Canada welcomes this decision.
China has been revoking the export licenses of Canadian canola exporters, including Viterra and Richardson, to China since March 2019 because of the detection of hazardous substances in canola shipments.
Data shows that the current annual domestic consumption of edible oil is about 30 million tons, of which the consumption of canola oil is about 6 million tons or so, but again, due to the limited production of domestic canola, about 5 million tons of canola commodities need to be imported each year to supplement, and the main source country of imports is Canada.
Canada is the world's largest producer and exporter of rapeseed, as many as 43,000 farms across the country to grow rapeseed-based, Canada's annual output of about 15.5 million tons of rapeseed, Canada and Canada rapeseed trade is Canada's most core trade commodities to China.
Canada's exports of canola products to China were worth more than C$4 billion, or about 20.79 billion yuan, in 2018, accounting for more than 15 percent of Canada's total exports to China, according to data given by Canada's largest grain processor, Richardson International Limited.
Since then, the Canadian side has been complaining to the WTO on related issues, all without success.
The sudden restoration of market access for the two Canadian canola exporters may be related to the current rising domestic edible oil prices.
In fact, we looked up more information and found that as early as 2021, with the international food prices high, China's import restrictions on canola commodities from Canada have been eased.
China's grain imports by country in May 2021
The data show that in terms of China's imports of canola commodities in 2021, Canada's position as the world's largest exporter of canola products is significant, although the total amount of imports can't be compared with that of before 2019, but whether it is canola, canola oil or canola meal, it still occupies that year's imports of the same type of commodities in our country First place.
From the point of view of specific import data, in 2021, China imported 2.44 million tons of Canadian canola, accounting for more than 20% of Canada's total exports, accounting for 92% of China's total imports of canola in that year; 910,000 tons of canola oil, accounting for about 42% of China's total imports; 1.58 million tons of canola meal, accounting for about 77.6% of the total imports.
According to unconfirmed information, in those two years China's imports from the United Arab Emirates canola oil, canola meal is also basically processed from Canadian rapeseed as raw material.
With Ukraine's sunflower oil exports blocked, Indonesia suspended palm oil exports and other impacts, international vegetable oil prices have risen to historical high areas.
And China, as the world's largest consumer of edible oil, about 80% of edible oil needs to be met through imports.
This includes, in addition to direct palm oil imports, more than 90 million tons of soybean imports per year, which can provide about 20 million tons of soybean oil consumption, as well as imports of rapeseed and rapeseed oil.