China Expands Canola Trade with Australia

July 15, 2026

The move widens China's buyer base for Australian canola beyond the state trader COFCO, adding competition for cargoes just as Canadian canola remains subject to a 14.9% total tariff into the same market.

Key Facts

China has begun granting import permits to private oilseed crushers for Australian canola. The move widens access beyond the state trader COFCO, which had made trial purchases since mid-2025.
The expansion follows China's finalized 14.9% total tariff (a 5.9% anti-dumping duty plus the standing 9% tariff) on Canadian canola, effective March 1, 2026, after a trade dispute cut Canadian shipments to a near-halt in 2025.
Imports must clear through seven named Chinese ports, including Guangdong, Tianjin, and Liaoning, and be processed at approved facilities near those ports, according to Reuters .

China has expanded access to Australian canola by allowing private processors, not just the state trader COFCO, to import the oilseed, according to three crushers who spoke to Reuters this week.

Bloomberg separately reported that several private crushers were told they can now apply for import permits, citing people with knowledge of the matter.

Why China Restricted Australian Canola Since 2020

China shut Australian canola out of its market in 2020 over biosecurity concerns tied to blackleg, a fungal plant disease.

For five years, nearly all of China's canola came from Canada. China imported 6.4 million tonnes of canola worth $3.4 billion in 2024, according to Chinese customs data, almost entirely from Canadian suppliers.

That changed starting in mid-2025, when COFCO began making trial purchases of Australian canola. By September 2025, COFCO had bought roughly 540,000 tonnes across nine cargoes, or about 8% of China's total canola imports that year, according to Reuters.

Until this week's development, that access had been limited to the state trader; private Chinese crushers had not been permitted to import Australian canola directly.

How the Canada Canola Tariff Dispute Opened the Door for Australia

China's shift toward Australian supply tracked a deepening trade dispute with Canada.

Beijing imposed a preliminary 75.8% anti-dumping duty on Canadian canola in August 2025. The duty followed an investigation launched in September 2024, part of a broader dispute that began after Canada placed tariffs on Chinese electric vehicles, steel, and aluminum.

China's Ministry of Commerce issued its final ruling on February 28, 2026, lowering the anti-dumping duty to 5.9% for five years, effective March 1.

Combined with China's standing 9% tariff, Canadian canola now faces a total effective duty of 14.9%, still an increase over the pre-dispute baseline of 9%. China also suspended a separate tariff on Canadian canola meal through the end of 2026.

Canada remains the world's largest canola exporter and Australia the second-largest, according to Reuters.

Canada is still likely to retain the largest share of the Chinese market, even with the private-crusher expansion, said Johnny Xiang, founder of AgRadar Consulting. Australian canola gives Chinese buyers an additional, price-competitive supply option, he said.