The Canada Boarder Services Agency on March 6 announced it is initiating investigations into alleged dumping and subsidizing of renewable diesel from the U.S. The announcement follows complaints filed by Tidewater Renewables Ltd. in 2024. 

Tidewater, the owner of a British Columbia biorefinery that produces renewable diesel, in late 2024 filed a countervailing (anti-subsidy) and anti-dumping duty complaint with the CBSA. The complaint alleged that unfairly traded imports of renewable diesel from the U.S. were significantly undermining the Canadian industry.

According to CBSA, Tidewater claims it has suffered material injury in the form of lost market share, lost sales, price undercutting, price depression, reduced profitability, and negative cash flow, return on investment and ability to raise capital as a result of subsidized U.S. renewable diesel dumped in the Canadian market. 

The CBSA and the Canadian International Trade Tribunal will each 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.

According to CBSA, the Canadian market of imports for renewable diesel has been estimated to be over $1.4 billion annually. The agency also explained that the Special Import Measures Act gives Canadian producers the legislated right to seek protection from dumped and subsidized imports. That law requires CBSA to initiate an investigation in response to properly documented complaints containing evidence of dumping and/or subsidizing causing injury to Canadian production. CBSA also noted that such investigations are not related to tariff implementation or trade actions taken by other countries affecting Canadian-made goods or energy products. 

Tidewater estimates that the CBSA investigation could result in duties valued between CAD 50 cents and 80 cents per liter on U.S. renewable diesel. That equates to approximately CAD $1.89 to $3.02 per gallon. At today’s exchange rate, that would be approximately USD $1.89 to $2.09 per gallon. The company said these duties would apply in addition to any tariffs imposed by Canada in response to trade actions taken by the U.S. 

"Tidewater Renewables supports free and fair trade in Canada's renewable diesel market,” said Jeremy Baines, CEO of Tidewater Renewables. “We believe the Investigation is an important step in levelling the unfair trade environment and offsetting unfair trade practices that have caused a flood of subsidized and dumped renewable diesel into Canada, significantly undermining the Canadian industry.”

CBSA said a statement of reasons that includes additional details about the investigations will be available on its website within 15 days from the date the investigations are launched. Additional information is available on the CBSA website.