Farm groups hope end of Meng Wanzhou case leads to resolution of canola dispute with China

Canadian farm groups are hoping to see a de-escalation of tensions with China that opens the door to resolving a long, costly trade dispute hanging over the country's canola sector.

More than two years of bans and restrictions on canola to China are estimated to have cost Canada's industry roughly $2 billion through lost sales and lowered prices.

The dispute boiled up in March 2019 amid rising diplomatic tensions over Huawei executive Meng Wanzhou's detention in Vancouver and the subsequent arrests of Canadians Michael Kovrig and Michael Spavor in China.

As he welcomed the return of Kovrig and Spavor, the president of the Canola Council of Canada said he hopes resolving a major issue in Canada-China relations will lead to an environment where the trade issue can be settled.

"Our goal as an industry is to have predictable, rules-based trade with China and for all our export companies to be treated similarly in China," Jim Everson said.

"The announcement last week, I think, really provides hope that there's a new environment there and that … relationships, if you like, are improving that would allow that kind of discussion to continue to take place."

China has been Canada's second-largest market for agricultural exports over the last decade and, according to the Canada West Foundation, is the first or second-largest agricultural export market for each of the prairie provinces.