News Capsule: Impact of the China–Canada Agreement: Canola Oil Trade Picks Up
28-Jan-2026 10:12 AM
News Capsule: Impact of the China–Canada Agreement: Canola Oil Trade Picks Up
★ China has struck a deal to buy around 10 cargoes (about 650,000 tonnes) of canola from Canada. These shipments are scheduled between February and April.
★ The purchases follow an initial trade agreement between China and Canada, under which China agreed to ease tariffs on Chinese electric vehicles, while Canada received relief on duties for its canola exports.
★ This development is likely to impact Australian canola exports. In recent months, COFCO had purchased nearly 500,000 tonnes of Australian canola. However, the Australian cargoes that have arrived in China are yet to be crushed.
★ As a result, China’s canola crushing industry remains largely stalled.
★ At the same time, exports of canola oilmeal have also been opened, which could negatively affect India’s mustard meal exports in the global market.