But with China declaring it “reserves the right to further react,” and many businesses on edge, the lobster and soybean sectors provide a lens to examine how quickly industries can go from winners to losers in global trade fights.
That could make the sector a target, said Mr. Sackton, though an outright ban on Canadian lobster by China is seen as unlikely. That’s because the product is so popular with Chinese households. With the tariffs still in place on U.S. lobsters, import restrictions on Canadian lobster would drive up prices, incurring the wrath of consumers.
Tension have eased in recent months. China lifted its ban on Australian coal in March, and Australia’s Trade Minister is in Beijing this week pursuing talks to lift the remaining bans on other products, including lobster.Not long ago, Canadian producers, like their lobster-exporting counterparts, were profiting from the China-U.S. trade war. In 2018, Canada exported more than $1.
Still, the situation was not entirely glum. Exporters quickly redrew their trade routes and developed new markets. During a turbulent period, they showed resilience. More recently, the Chinese market has rebounded strongly and reclaimed its title as the No. 1 buyer of Canadian soybeans. However, the concern now is that frosty relations between the two countries could lead to another round of damaging trade disputes.With this particular crop, China can easily mess with Canada, which is a small producer of soybeans, lagging behind giants such as the U.S. and Brazil. China is also bulking up its domestic production and buying from Russia.