The CBSA launches investigations into the alleged dumping and subsidizing of renewable diesel from the United States
The Canada Border Services Agency (CBSA) announced today that it is initiating investigations to determine whether imports of renewable diesel from the United States are being dumped and subsidized. These practices can harm Canadian industries by undercutting Canadian prices, which undermines fair competition.
The CBSA is investigating because of a complaint filed with the CBSA by Tidewater Renewables Ltd. (Tidewater). Tidewater alleges that as a result of an increase in the volume of the dumped and subsidized imports from the U.S., they have suffered material injury in the form of lost market share, lost sales, price undercutting, price depression, reduced profitability, and negative impact on cash flow, return on investment and ability to raise capital.
The CBSA and the Canadian International Trade Tribunal (CITT) both play a role in the investigations. The CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by May 5, 2025. Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair prices and/or are being subsidized, and will make preliminary decisions by June 4, 2025.
Currently, there are 158 special import measures in force in Canada, covering a wide variety of industrial and consumer products. These measures have directly helped to protect approximately 31,000 Canadian jobs and $11.6 billion in Canadian production.
Quick facts
- Under the Special Import Measures Act (SIMA), Canadian producers have the legislated right to seek protection from dumped and subsidized imports. SIMA requires the CBSA to initiate an investigation in response to properly documented complaints containing evidence of dumping and/or subsidizing causing injury to Canadian production. These types of investigations are part of the CBSA’s mandate and carried out in accordance with domestic law and international trade rules. The investigations are not related to tariff implementation or trade actions taken by other countries affecting Canadian-made goods or energy products.
- The subject goods are renewable diesel from the U.S. For more product information, please refer to the CBSA’s Anti-dumping and countervailing webpage.
- The Canadian market of imports for renewable diesel has been estimated to be over $1.4 billion annually.
- A statement of reasons, with additional details about the investigations, will be available on the CBSA’s website within 15 days from the date the investigations are launched.
Source: Canada Border Services
____________________________________________________________________________________________________________________________________________________________________________________
Check our Farrow’s CARM page!
