Seeking to reduce trade risks in a dispute with China, Ottawa increased insurance coverage available to canola exporters, a Canadian government corporation said on Thursday, June 13.

China halted purchases of Canadian canola in March, citing identified pests in shipments from Canadian companies Richardson International Ltd and Viterra Inc. This was in response to the arrest in December by the Canadian police on a warrant issued by the United States, the head of the Chinese corporation Huawei Technologies Co Ltd.

China, until recently, has been Canada’s main export canola market and the largest producer of vegetable oil in the world.

Government Corporation Export Development Canada (EDC) will increase insurance for loans for exporters for additional sales of $ 150 million Canadian dollars (112.59 million US dollars), EDC Executive Vice President Carl Barlock said at a press conference.

The insurance will cover commercially viable sales contracts for canola seeds, oil and meal and will cover potential non-payment.

At the same time, Burlock was not able to determine the total amount of credit insurance available for the sale of canola.