• China extends canola probe to March 2026, citing case complexity
• Canada risks losing key canola market as China pivots to Australia
• Analyst suggests deal could resolve tariffs on vehicles and metals

BEIJING, Sept 5 (Reuters) - China on Friday prolonged its probe into Canadian canola imports, buying six more months for negotiations that could ease a year-long trade dispute sparked by Ottawa's tariffs on Chinese electric vehicles.

The Ministry of Commerce said the anti-dumping probe would now run until March 9, 2026, citing the complexity of the case, a statement showed.

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Beijing, the world's largest importer of canola, imposed preliminary duties of 75.8% on Canadian canola seed imports in August. A final ruling could result in a different rate, or overturn the decision.

Canada's Agriculture Minister Heath MacDonald said in an interview his government is hopeful the Chinese move allows more time for the two sides to resolve trade tensions.

"If there's a little more opportunity to have further dialogue, further communication, which we're doing with the appropriate people within the Chinese government, then it's a plus without a doubt," MacDonald said.

The Canadian government announced new support for Canada's canola industry on Friday, with subsidies for domestic biofuels production, a pledge to improve biofuels regulations to encourage investment, and subsidized loans for canola growers.

Canada's main canola industry organizations also said they were "hopeful" that the extension of the preliminary duties provides time for a longer-term solution.

Canada, the world's largest exporter of canola, shipped almost C$5 billion ($3.63 billion) of canola products to China in 2024, about 80% of which were seed. The steep duties on canola seed, if they remain in place, would likely all but end those imports.

China, which relies on Canada for nearly all of its canola seed supplies, also imposed tariffs on canola oil and meal in March. Canada, in turn, has imposed tariffs on Chinese steel and aluminum.

Ottawa has grown increasingly anxious about losing a key customer, especially as China appears to be pivoting towards Australian supplies.

Prime Minister Mark Carney's Parliamentary Secretary Kody Blois and Saskatchewan Premier Scott Moe are heading to China from September 6-9 to meet with Chinese officials and discuss trade issues.

Saskatchewan is the prairie province that produces about half of Canada's canola, the majority of which is exported.

In July, Reuters reported that Canberra is close to an agreement with Beijing that would allow Australian suppliers to ship five trial canola cargoes to China.

The following month, Chinese state-run trading firm COFCO booked the first new-crop Australian canola, marking China's first imports from Australia since 2020.

The Winnipeg ICE canola futures market initially rose on Friday after the China news broke, but a trader said some market participants might have been misinterpreting the headline as meaning China had suspended its duties, rather than extending the preliminary duties until March.

ICE November canola settled down 0.55%.

Canada's canola industry has been hoping for an early resolution to the canola duties and tariffs.

https://www.reuters.com/business/energy/china-delays-final-ruling-canola-dispute-with-top-supplier-canada-2025-09-05/