China, Canada in talks as tougher canola standard nears

By Rod Nickel
WINNIPEG, Manitoba, March 28 (Reuters) - Canada and China
are in talks about Beijing's plans to toughen its standard on
Canadian canola imports, an industry official said on Monday,
days ahead of the change taking effect.
China's quarantine authority, AQSIQ, notified the Canadian
Food Inspection Agency (CFIA) last month that it would allow no
more than 1 percent of foreign material, such as straw and seeds
from other plants, in canola shipments starting April 1. The
current limit is 2.5 percent.
Exporters have said the new standard by Canada's biggest
canola export market, arising from a dispute about a harmful
fungus, would be difficult and costly to meet.
"There are active negotiations underway," said Patti Miller,
president of the Canola Council of Canada, an industry group
whose directors include exporters and processors Cargill Ltd
CARGIL.UL , Richardson International, Viterra Inc VILC.UL ,
Bunge Ltd BG.N and Archer Daniels Midland Co ADM.N .
"Both government and industry would like to have a permanent
resolution. The focus of the negotiation is how we get there."
Miller, speaking by email, said she could not comment on
specifics. Ottawa is leading negotiations for Canada, with the
council's input, she said.
The Western Producer newspaper reported on Thursday that
China may delay implementation, citing Canadian industry
sources.
Canada is the world's biggest producer and exporter of
canola, also called rapeseed, which is used mainly to produce
vegetable oil.
Blackleg disease, caused by a fungus common in Canada, can
significantly reduce crop yields, and China has raised concerns
since 2009 about the risk of it spreading to the country through
imports. Some traders in both countries said the real issue
behind the new standard was that China had ample stocks of
rapeseed oil and wanted to slow imports.
Officials at the CFIA and Canada's agriculture department
could not be reached on Monday, a holiday for government
workers.
A spokesman at the Chinese Embassy in Ottawa could not
immediately comment.