China, Canada to agree on canola disease this week

BEIJING, Nov 2 - China's quarantine authority is talking to Canadian officials about cargoes of canola with blackleg disease and is likely to announce a solution this week to reduce the impact on trade, a Chinese official said on Monday.

"We are talking with the Canadian side these days and hopefully can come out with a agreement this week," a division chief with the General Administration of Quality Supervision, Inspection and Quarantine, told Reuters.

"We are talking to try to reduce the impact on trade while not letting the disease spread to the domestic crop," said the official, who declined to be identified.

He declined to provide any details but said the bureau may publish some requirements relating to imports. He said the bureau had tested Canadian cargoes for the disease, which represents a potential risk to the domestic rapeseed crop.

The bureau had earlier said that China would reject cargoes with blackleg disease from Nov. 15, threatening shipments of canola from Canada, the world's largest supplier to China, the largest importer last year.

One official with a major rapeseed crusher told Reuters that as many as 4 cargoes have been cancelled as Chinese buyers are worried that the quarantine authority may detain cargoes.

China has booked more than 20 cargoes of new canola crop, with 15 cargoes scheduled for shipment after the date. Each cargo carries 55,000 tonnes to 60,000 tonnes.