China Targets Canadian Glencore Unit in Canola Crackdown -- Update
26 Março 2019 - 2:42PM
Dow Jones News
By Paul Vieira
OTTAWA -- China has revoked the permit for a second Canadian
grain handler to ship canola seed into the world's second-largest
economy, reinforcing fears among grain growers that they have
become collateral damage in the diplomatic dispute between Ottawa
and Beijing over a detained Huawei executive.
Chinese customs authorities posted a notice online Tuesday
indicating that they had revoked the export licence held by Viterra
Inc., which is part of Glencore PLC, after the discovery of pests
in canola-seed shipments that arrived in the Chinese cities of
Dalian and Nanning. The suspension is required "to prevent the
introduction of harmful organisms" into the country, the notice
added.
The formal move by China comes days after the Canola Council of
Canada warned that Chinese importers have ceased buying Canadian
canola seed altogether, regardless of the processor. A spokesman
for the council said the Viterra ban should prompt Canadian
officials to redouble efforts to find a solution.
A spokesman for Viterra, of Regina, Saskatchewan, wasn't
immediately available for comment. Canadian food-inspection
officials have said their review of foreign-bound canola seed meets
foreign-import requirements from China.
Canola industry officials and China experts say Beijing's canola
moves are part of China's efforts to persuade Canadian authorities
to release Meng Wanzhou, Huawei Technologies Co.'s chief financial
officer. Ms. Meng was arrested by Canadian officers in December, at
the behest of U.S. authorities, under terms of an extradition
treaty, on allegations that she and Huawei violated U.S. sanctions
on Iran. She is on bail in Vancouver, British Columbia, and is
scheduled to return to court in early May.
"We think this is part of a larger Canada-China issue, and we
hope it gets resolved expeditiously," said Jean-Marc Ruest,
vice-president and general counsel at Richardson International
Ltd., Canada's largest grain processor, which had its China canola
permit revoked earlier this month.
Half of the canola seed produced in Canada is export bound, with
China being by far its biggest market. Canadian canola-seed exports
to China totaled 2.7 billion Canadian dollars (US$2.02 billion) in
2018. On a volume basis in the most recent crop year, ended July 31
last year, Canada shipped 4.32 million metric tonnes (4.76 million
tons) of canola seed to China, or more than the No. 2 and No. 3
markets combined.
"Obviously we have seen a certain amount of challenges in our
relationship with China over diplomatic issues and the rule of
law," Canadian Prime Minister Justin Trudeau told reporters in
Winnipeg, Manitoba, Tuesday hours before a scheduled meeting with
senior executives from Richardson International.
China also detained two Canadians immediately after Ms. Meng's
arrest, and has alleged the two worked together to steal Chinese
state secrets.
Mr. Trudeau said his government was treating China's ban on
canola seed on an urgent basis, reminding reporters that Canada's
foreign minister, Chrystia Freeland, is the daughter of a canola
farmer.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
March 26, 2019 13:27 ET (17:27 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Glencore (PK) (USOTC:GLNCY)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Glencore (PK) (USOTC:GLNCY)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024