Justin Trudeau’s government is expanding a loan program for farmers and launching a trade mission to Japan and South Korea as Canadian canola exports get caught up in a diplomatic feud with China.
Trudeau’s agriculture and trade ministers announced the plan Wednesday in Ottawa. It more than doubles the Advanced Payments Program loan limit for all farmers, while quintupling the amount available to canola growers in particular. They’re also extending the deadline for another aid program.
Beijing alleges impurities in the crop, but Canada says it has so far declined to provide evidence of that. Instead, it’s seen as likely retaliation for Canada’s detention of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou late last year on a U.S. extradition request.
China also seized two Canadians shortly after Meng’s arrest, and has since sentenced two others to death on drug charges. Meng, the daughter of Huawei’s founder, is under house arrest, subject to bail conditions, as the extradition process unfolds. China has pressured Canada to release her.
Trade Minister Jim Carr, who will lead the Japan and South Korean trade missions in June, said Canada may still launch a formal challenge at the World Trade Organization. However, he said the first step is to help farmers as Canadian officials press the Chinese for any evidence of their complaint.