Berlin | Reuters — Canada and China have agreed to suspend proceedings against Chinese measures affecting the importation of Canadian canola seed, according to a World Trade Organization (WTO) complaint on Thursday.
The WTO Dispute Settlement Body (DSB) panel suspended its work as of Tuesday, the complaint said.
Work can be suspended at any time at the request of the complaining party for a period of up to 12 months, said the complaint. If work is suspended for longer than that, the authority for establishing the panel lapses, it added.
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Producer groups across Canada expressed a mix of relief and cautious optimism following the news that Canada had struck a deal with China to lower tariffs on canola, peas and other goods, in return for relaxing duties on Chinese electric vehicles.
China blocked imports of canola seed from two major Canadian exporters starting in March 2019, alleging pest contamination. However, the ban was widely believed to be a retaliation for Canada’s arrest of a Chinese tech executive the previous December on a U.S. warrant alleging bank and wire fraud.
Canada began the trade challenge process in September 2019, seeking bilateral consultations with China at the WTO.
The arrested executive, Huawei’s Meng Wanzhou, was released from house arrest in September last year and returned to China after reaching a deal with U.S. prosecutors.
A DSB panel had been requested last June and organized last November last year to hear Canada’s canola case, but China lifted its ban on the two affected companies’ canola in May this year before a DSB hearing could be arranged.
— Writing for Reuters by Miranda Murray; includes files from Glacier FarmMedia Network staff.
