Tag Archives: Canada

The Congressional Research Service is looking into whether or not President Trump can legally withdraw from the North American Free Trade Agreement on his own. Politico says it’s a question the trade world would like an answer to sooner rather than later.

Can the president withdraw without Congressional support? Politico says the answer is not clear. Congresses’ research arm says, if you look solely at international law, it looks like the Trump Administration would be able to act on its own. However, it’s quite likely that the president would have problems based on domestic law. It’s difficult to say how a court case would get resolved if affected companies pursued litigation. Trump has threatened to withdraw from the original NAFTA agreement as a way to put pressure on Congress to pass the U.S.-Mexico-Canada agreement.

Administration aides have told Politico that there are no immediate plans to back out of the existing deal. One factor that might increase the possibility of legal action is if Congress signals disapproval of any attempt to withdraw from NAFTA. In the past, the Supreme Court typically says presidential power to act unilaterally is at its weakest when the White House takes action that Congress doesn’t agree with.

Imports of canola, a Canadian oilseed crop, will now undergo more thorough inspections in China, the country’s customs agency said Thursday, amid what appears to be a retaliatory move amid a diplomatic row over the arrest of a Chinese executive.

Relations between Canada and China have been tense since December, when Canada arrested Chinese tech executive Meng Wanzhou in Vancouver at the request of the U.S. China warned of “grave consequences” if Canada did not immediately release Meng Wanzhou, the chief financial officer of Huawei.

U.S. prosecutors have filed charges accusing Meng, who is the daughter of Huawei’s founder, of lying to banks about dealings with Iran. Huawei denies any wrongdoing.

Apparent targets of China’s ire have included two Canadians detained on suspicion of harming national security, a third Canadian sentenced to death, and now the Canadian staple canola.

Canola is grown in China, Japan and many other countries.

However, the website for the Canola Council of Canada calls the crop “Canada’s greatest agricultural success story” and the world’s only “Made in Canada” crop. According to the Canola Council, canola was developed by Canadian researchers using traditional plant breeding techniques, resulting in a bright yellow variety of rapeseed whose seeds can be harvested for vegetable oil.

China’s customs administration said in a statement posted to its website Thursday that four customs offices in China found pests such as fungal pathogens in canola imports. It confirmed that it revoked the export permit held by Richardson International Ltd., one of Canada’s largest grain processors.

The agency said stronger inspections and lab testing while canola imports are in quarantine were needed.

Canadian Agriculture Minister Marie-Claude Bibeau said in a statement Wednesday that the Canadian Food Inspection Agency conducted investigations after China issued notices of non-compliance on canola seed imports, including nine since January. She said the agency had not identified any pests or bacteria of concern.

China buys about 40 percent of Canada’s canola exports, and the revocation of Richardson’s permit hurts the entire chain of industries involved in the market, the Canola Council of Canada said.

Meanwhile, the dispute centered on Huawei is simmering.

Huawei announced Thursday that it is challenging a U.S. law that labels it a security risk and would limit its access to the American market for telecom equipment.

BEIJING (AP) — China is blocking some imports of the agricultural product canola from Canada due to fears of insect infestation, the foreign ministry said Wednesday.

The move comes amid a conflict between the countries over Canada’s arrest of a Chinese technology company executive and is seen by some as a new tactic to achieve leverage over Ottawa.

China acted to suspend canola imports from a Canadian company “in accordance with laws and regulations and international practice,” Foreign Ministry spokesman Lu Kang said at a daily news briefing.

Lu cited “harmful organisms” he did not further identify as a threat. He said China’s government “needs to protect the health and safety of its own people.”

“I can tell you responsibly that the Chinese government’s decision is definitely well-founded. Upon verification, China customs has recently detected dangerous pests in canola imported from Canada many times,” Lu said.

One of Canada’s largest grain processors, Richardson International Ltd., said Tuesday that China had revoked its permit to export canola there.

Some saw that as retaliation for Canada’s arrest of a top executive for the Chinese tech giant Huawei.

Canada is proceeding with an extradition hearing for Huawei CFO Meng Wanzhou, who is the daughter of Huawei’s founder. She was arrested by Canada at the request of the U.S., where she is wanted on fraud charges for allegedly misleading banks about the company’s dealings with Iran.

China has a history of using trade measures to retaliate over perceived political slights. It suspended its bilateral trade deal with Norway and restricted imports of Norwegian salmon after the Nobel Peace Prize was awarded to Chinese political prisoner Liu Xiaobo in 2010.

Britain and other countries were also retaliated against over meetings with the Tibetan spiritual leader the Dalai Lama, considered a dangerous separatist by Beijing.

Canadian Agriculture Minister Marie-Claude Bibeau said in a statement that the Canadian Food Inspection Agency conducted investigations after China issued notices of non-compliance on canola seed imports, including nine since January. She said the agency had not identified any pests or bacteria of concern.

China receives about 40 percent of Canada’s canola exports, and the revocation of Richardson’s permit hurts the entire value chain of industries involved in the market, the Canola Council of Canada has said.

Canola prices already have been hit by China’s retaliatory tariffs on U.S. agricultural exports. Further cutbacks on Chinese buying would deal a major blow to what is a lifeline for agriculture in western Canada.

“We are working very, very hard with the Chinese government on this issue,” Canadian Foreign Affairs Minister Chrystia Freeland said Tuesday.

China has warned of serious consequences if the Huawei executive is not released. China arrested two Canadians on Dec. 10 in what was widely seen as an attempt to pressure Canada.

After Meng’s arrest, a Chinese court also sentenced a Canadian to death in a sudden retrial, overturning a 15-year prison term handed down earlier.