The dispute centers around the use of the term “Canadian canola” in marketing materials. China, the world’s largest importer of canola, has been pushing for the use of the term “Canadian canola” to be restricted to only those products that meet specific quality standards. This demand has been met with resistance from Canadian producers, who argue that the term “Canadian canola” is a generic term and should not be restricted. They argue that the use of the term “Canadian canola” is a valuable marketing tool that helps to differentiate their product from other canola varieties.

This investigation, which is being conducted by the Ministry of Commerce, is expected to last for several months. During this period, the Chinese government will be examining the price of Canadian canola seed, its production costs, and the market share of Canadian producers. The investigation is also expected to consider the impact of Canadian canola exports on the Chinese market. The Chinese government has stated that it will not tolerate any unfair trade practices. It has also emphasized that it will ensure that its domestic producers are not harmed by the influx of cheap Canadian canola seed. The move by the Chinese government is a significant development in the trade relations between the two countries.