The executive director of Soy Canada says if China goes ahead with a 25 per cent tariff on U.S. soybeans, it will have a significant impact in the global marketplace.

Ron Davidson notes the perception is this would be good for Canada. However, that is not entirely true.

"We could perhaps marginally increase the volume and marginally increase perhaps the price of soybeans in China, but we could be damaged more significantly by increased soybeans coming into Canada and by increased U.S. soybeans perhaps at a lower price in the other 69 or 70 markets that we export to."

China is the number one export market for Canadian soybeans, with almost a billion dollars worth of soy products sold to the country last year, equaling almost two million kilograms.

Davidson notes even with the rise in soybean acres in Canada; we would not even be close to filling the void that would be left by the United States.

"Canada's total production of soybeans last year was about 7.7 million tonnes," he explained. "China imports between 95 and 100 million tonnes every year, of which perhaps a third will come from the United States...China would certainly be looking for soybeans from other major producing countries, which are Brazil and Argentina."

Davidson doesn't think the recent developments will have much of an impact on spring seeding decisions here in Canada, as most farmers have already planned or purchased their seed. He thinks it will have a bigger impact south of the border, adding international markets will still be open to Canadian producers.