China and Canada have broken the deadlock over long-standing Canola issue, after China agreed to allow Canadian canola shipments with current dockage level of 2.5 percent.  

The deadlock was broken following an intense negotiation between Canadian and Chinese officials that went till overnight on Thursday, CBC reported.

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Per the said agreement, both countries have agreed to conduct additional scientific research to find a "science-based and stable solution," Canada's Prime Minister Justin Trudeau told a joint press conference in Ottawa.

"This is great news.......Our progress on this file goes to show how two countries can collaborate, can solve difficult challenges together," Trudeau added.

Chinese Premier Li Keqiang said the agreement was reached after taking into account the larger picture of Canada-China relations, adding that it will run until 2020. In the meantime, both countries will study the risk that the current level of dockage may pose.

Li, who is on a four-day visit to Canada, had reached Ottawa on Wednesday, after attending the United Nations General Assembly meeting in New York. The sensitive issue of canola shipments was expected to be one of the main talking points during Li's visit.

The canola issue had dominated Trudeau's visit to China earlier this month, which had happened on the sidelines of G20 summit. The Canadian prime minister said then that Ottawa had scientific proof to prove that the current level of dockage carries lower risk of blackleg diseases.

China had expressed fear that high level of dockage found in Canadian seeds could potentially spread blackleg diseases into Chinese crops. Chinese authorities had asked Canadian exporters to reduce the current level of dockage till Sept. 1, or face restriction in Canola shipments.

China had agreed to extend the deadline for Canadian canola exports beyond September 1 during Trudeau's visit. Canada is one of the largest exporters of canola seeds in the world. China is one of its largest markets, with over 40 percent of canola seeds exported to Chinese market every year.

Canada's canola exporters, who for long have been lobbying for a negotiation with China, have welcomed Thursday's agreement.

"This brings much-needed stability to the canola industry," said Patti Miller, president of the Canola Council of Canada, which represents Canada's exporters and farmers of the said product. 

Tagschina, China and Canada, China and Canada Canola Issue, Li Keqiang's Visit to China, China Canada Canola Dispute