Officials from the Canadian government are currently in Beijing to persuade China to reconsider its plan to toughen its quality standard for canola shipments from Canada, CNBC.com reported.

China's quarantine authority AQSIQ informed the Canadian government earlier this year that it would enforce stricter inspection standards for canola shipments starting from April 1. The date was later postponed to September 1. Canada is one of the biggest exporters of canola, which is mainly used to produce vegetable oil.

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On Friday, AQSIQ will hold a meeting with Canadian officials including representatives of the Canadian Food Inspection Agency (CFIA) and Canada's agriculture and trade departments, said Patti Miller, President of industry group Canola Council of Canada.

"It's a pretty difficult time right now," Miller said. "Both sides have been very open in expressing their desire to find a resolution, but there is a significant difference in opinion."

China, in recent years, has expressed concern over blackleg disease spreading from Canadian canola into Chinese crops of the oilseed. However, traders claim that real reason for China's tough stance on Canada's canola is overproduction in its domestic rapeseed oil stocks.

China is the biggest canola market for Canadian exporters including Viterra Inc. and Cargill Ltd. If China imposes stricter quality checks, it would mean a huge loss for Canada's canola industry. The canola controversy may equally hurt China's pursuit of a free trade deal with Ottawa.            

"There's an expectation from all that we meet in the middle here," said Guy Gallant, spokesman for Canadian Agriculture Minister Lawrence MacAulay.

Earlier this month, China's AQSIQ imposed stricter quality inspection on kiwifruit products export from New Zealand, which led to Zespri temporarily halting its kiwifruit shipments to China.   

TagsCanada, Canada and China, Canola, china