China’s ongoing ban on Canadian beef, stemming from a 2021 case of atypical bovine spongiform encephalopathy (BSE) in Alberta, remains unresolved, adding to the uncertainties Canadian exporters face. The ban has persisted despite atypical BSE posing no health risks to humans and typically having no impact on international trade. Although Canada has provided the requested information, China has not indicated when the ban might be lifted. Canadian officials are actively engaging with China to address the issue.
Meanwhile, China has also launched an anti-dumping investigation into Canadian canola, following Canada’s recent tariff hike on Chinese electric vehicles. If China imposes heavy tariffs on canola, it could cost Canadian farmers up to $1 billion, per a DBRS Morningstar estimate.
Although China is less critical to Canada’s beef market than canola, it was once a key growth market, importing $193 million worth of Canadian beef annually before the ban. Industry frustration is mounting over the prolonged restrictions, but some believe the delays are due to China’s pragmatic approach, where decisions are based on their current needs and market conditions.
Canada’s relations with China have been strained in recent years, especially following the 2019 canola seed import ban and the detention of Huawei executive Meng Wanzhou. While relations have improved, Canada’s ambassador to China, Jennifer May, advises businesses to approach the Chinese market with caution and explore alternative markets to mitigate risks. Many Canadian companies are now looking toward other Asian markets, which are seen as more stable.
