China alleges Canadian canola has harmful pests in it, escalating trade and diplomatic tensions

 

A high-speed bullet train travels past a canola field in Haian, China, this month. Canada is a major exporter of the grain to China, but customs officials have halted the flow of the crop, alleging dangerous impurities.(Reuters)

A second Canadian company has had its licence to sell canola to China revoked as a crackdown continues on one of the most Canadian crops in the world.

The latest move involves Regina-based Viterra Inc., Reuters and Bloomberg reported Tuesday. The company, formed out of the merger of the former farming collective Saskatchewan Wheat Pool, is a major handler of canola.

Canadian company Richardson International was hit by a similar ban earlier this month when the Chinese government declared it had found dangerous pests such as fungus in the company's canola, so it halted all shipments.

Last week, the Canola Council of Canada announced orders from China had mysteriously dried up across a number of canola sellers.

China's ban of Viterra is effective immediately.

In justifying the move, Chinese customs officials said the ports of Dalian and Nanning had detected the same pests in Viterra's canola.

The company did not immediately respond to a request for comment by CBC News.