Discussions between Canadian and Chinese officials continue over Canadian canola exports, and it appears those talks have yielded some progress.

Wednesday morning Prime Minister Trudeau announced China has granted an extension to the September 1st deadline originally announced earlier this year. During that extension, canola exports will fall under the current rules of 2.5% dockage. China had stated as of September 1st the new rules would set a maximum of 1% dockage in Canadian canola exports.

Dockage the amount of foreign material, like pieces of stems and leaves that can be found in a shipment. China wants Canada to reduce the level of dockage in our shipments, by half over concerns about blackleg disease.

In lieu of the extension, International Trade Minister Chrystia Freeland announced Canadian and Chinese negotiators have also agreed to work on a long-term agreement regarding canola exports. Her hope is that deal could be reached in the next few days or coming weeks.

"What China is proposing to do is have a government mandated one per cent limit on dockage, which is lower then anywhere else in the world," says Canola Council of Canada vice president of government relations Brian Innes, "in fact, no where in the world is lower then 2.5 per cent. Right now that would be very difficult for the Canadian industry to meet on the volume of canola that we send to China."

Innes adds that the situation is already causing issues for Canada's canola industry.

"The impacts of this are already being felt by farmers. It is slowing our exports down already, we have seen prices fall, and we know that not achieving a solution will further reduce incomes and create more uncertainty," he said.

China represents about 40 per cent, or about four million tonnes, of Canada's canola seed exports, with huge potential for further growth in that market.