The Globe and Mail reports in its Monday edition that Canada's canola industry is seeking an exemption from the U.S. Environmental Protection Agency's proposed policy changes that would cut the credit value for biofuels made from imported crops, putting Canadian canola at a competitive disadvantage. The Globe's Kate Helmore writes that the changes would cut the credit value by 50 per cent. The industry is already facing challenges, including China imposing 75.8-per-cent preliminary duties on canola seed imports and 100-per-cent tariffs on canola oil and meal. Beijing's actions are linked to Ottawa's tariffs on Chinese electric vehicles, steel and aluminum, which were imposed due to U.S. influence. The canola sector has urged Ottawa to respond since China's initial duties in the spring. However, appeasing Beijing by reducing electric-vehicle tariffs could strain Canada-U.S. relations and prompt the EPA to act on these changes.
The Canadian and U.S. biofuels sector is at a critical juncture. Canada must protect its farmers while ensuring it is viewed as part of the U.S.'s success rather than a threat. One observer says, "Canada is kind of collateral damage in this fight between two large elephants: the U.S. and China."
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