China has imposed 100% tariffs against Canada on canola oil, canola meal and peas, as well as 25% tariffs on certain pork, fish and seafood products, after the conclusion of an “anti-discrimination” investigation.
“The government of Canada is deeply disappointed by this decision, which will hurt Canadian farmers, harvesters and businesses, and will raise prices and diminish choice for Chinese customers, as well as in the agriculture, fish and seafood, retail, restaurant and food-preparation industries,” the Canadian government said in a press release.
In response, Canada’s Minister of Agriculture and Agri-Food and Rural Economic Development Kody Blois, launched AgriStability. AgriStability offers affordable, whole farm protection to support producers when challenges are beyond their capacity to manage. The additional proposed supports include increasing the compensation rate from 80% to 90% and doubling the payment cap to CA$6 million (US$4.2 million) for the 2025 program year.
“China’s decision to apply these tariffs will have a devasting impact on our farm families and their communities. We’re working hard to diversify our trading partnerships and establish new markets, but we know the sector needs support now,” Blois said.
To get money to producers faster, the government of Canada has also provided provincial and territorial governments with the option to proactively enter into an agreement to issue interim payments at a higher payment rate and initiate targeted advance payments in the event of tariffs, or for the hog sector in the event of African swine fever. In provinces and territories that adopt these enhancements, it would mean producers enrolled in AgriStability will be eligible to apply for an interim payment up to 75% of their estimated final payment for the 2025 program year. Additionally, an administrator will be able to establish a targeted advance payment for the 2025 program year, for example, where analysis shows that market disruptions have resulted in a sufficient loss to trigger AgriStability payments for a particular sector or region.
The government of Canada said it will continue to work with provincial and territorial partners and industry stakeholders moving forward and remains open to engaging in constructive dialogue with China to resolve trade differences on the basis of mutual respect and equality.
