By News – d2127

Researcher says canola remains vulnerable due to export reliance

Jan 21, 2026 | 9:15 AM

Despite Canada’s recent landmark deal with China on reducing canola tariffs, new research shows the major Prairie crop remains a vulnerable export.

The analysis from the Simpson Centre at the University of Calgary says canola is over reliant on two major markets — China and the United States.

The paper says both countries absorb nearly 90 per cent of Canadian canola exports that are worth billions of dollars.

Lead researcher Farzana Shirin says there are limited options to export the crop elsewhere.

For example, she says the European Union has restrictions on genetically modified products, which essentially shut out Canadian canola.

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But Shirin says Canada can get around Europe’s genetically modified standards if it sells the oil as biofuel.

She says Canada should upgrade its export facilities so they can handle more oil, while also building more crushers, to tap into the growing biofuels market.

Last week, Prime Minister Mark Carney made a deal that will see China significantly reduce tariffs on Canadian canola seed in exchange for Ottawa making concessions on Chinese electric vehicle duties.

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The Canadian Press