Exploring How Countries Diversified Their Imports in Response to China’s Past Bans on Canadian Canola

China’s renewed threat of trade sanctions against Canadian canola, following Ottawa’s tariffs on its electric vehicles, marks the latest instance of an apparent retaliatory tactic by Beijing.

Canada, too, has diversified its markets since China last sanctioned its canola in 2019, in what was regarded as retaliation over Ottawa’s arrest of Huawei executive Meng Wanzhou. The three-year ban cost Canada an estimated $1.54 billion to $2.35 billion, says the Canola Council of Canada. In response to the restrictions, Canada redirected canola seed to other major markets like Europe, Japan, and Mexico, which helped rebalance its total exports, the council said.

Here’s a look at how other countries weathered China’s trade restrictions through diversification.

Trade Spat With Australia

China imposed restrictions on various Australian products starting in 2020 following a series of political disputes. These included Canberra’s call for an international investigation into the origins of COVID-19 and its rejection of Beijing’s claims over the South China Sea. Additionally, Australia’s 2018 decision to ban Huawei from the country’s 5G network over security concerns contributed to the tensions.