REGINA - A new Chinese tariff of nearly 76 percent on Canadian canola seed took effect today. This duty, announced on Tuesday, has already led to a significant drop in the price of one of Canada’s most valuable agricultural products, resulting in millions of dollars lost in value.

The tariff follows a year-long anti-dumping investigation initiated by China into Canadian canola. This investigation was a reaction to Canada imposing a 100 percent tariff on Chinese electric vehicles. Since then, both countries have implemented various tariffs against each other.

Canadian canola farmers and government officials have strongly denied the allegations of dumping. They argue that exporters have adhered to rules-based trade practices. In light of the new tariff, farmers and premiers from the Prairie provinces are urging the federal government to engage in constructive dialogue with Chinese officials to seek a resolution to the ongoing trade dispute.