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UPDATE 1-Canada promises help for farmers amid China canola dispute, dismisses calls to pull out of Beijing-led bank

dismisses calls to pull out of Beijing-led bank@ (Adds comments by prime minister, background, details)

OTTAWA, April 30 (Reuters) - Canadian Prime Minister Justin Trudeau on Tuesday said Ottawa would soon announce help for canola farmers and producers hurt by a China ban on seed imports but brushed off calls to pull funding for a Chinese-led investment bank.

China and Canada are locked in a diplomatic and trade dispute that has resulted in China blocking imports of canola seed from two companies. China cited the discovery of pests, a charge Canada dismisses.

Trudeau, under increasing political pressure to settle the matter, made his remarks in the House of Commons. The Liberal government has already dropped big hints that it will boost programs that compensate farmers in times of hardship.

"We're going to continue to stand up for Canadian producers ... (and) farmers and we will have good news to announce in just the next few days," he said.

The opposition Conservative Party, leading in the polls ahead of a federal election in October, urged Trudeau to strike back by withdrawing Canada's C$256 million ($191 million)contribution to the China-led Asian Infrastructure Investment Bank (AIIB).

"We believe in Canadian leadership around the world," Trudeau said in response, saying the AIIB was focused on clean green infrastructure throughout Asia.

($1=1.3392 Canadian dollars) (Reporting by David Ljunggren; Editing by Lisa Shumaker and Chizu Nomiyama)