The Canadian International Trade Tribunal on May 5 announced that a preliminary investigation launched earlier this year did not find evidence that imports of U.S. renewable diesel are causing harm to Canada’s domestic renewable diesel industry. 

The Canada Boarder Services Agency on March 6 announced it was initiating investigations into alleged dumping and subsidizing of renewable diesel from the U.S. The investigation was launched as a result of complaints filed by Tidewater Renewables Ltd. in late 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.

In its compliant, Tidewater claimed 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. 

According to information released in March, CBSA and the CITT would each play a role in the investigations. The CITT was to begin a preliminary inquiry to determine whether the imports are harming Canadian producers, with a decision issued by May 5, 2025. Concurrently, the CBSA is investigating whether the imports are being sold in Canada at unfair prices and/or are being subsidized, and is expected to make preliminary decisions by June 4, 2025.

CITT on May 5 issued an announcement concluding “that the evidence does not disclose a reasonable indication that the dumping and subsidizing of the subject goods have caused injury or retardation or are threating to cause injury.” As a result, the CITT has terminated the preliminary injury inquiry with respect to U.S. imports of renewable diesel.

Tidewater on May 6 expressed disappointment with CITT’s decision and indicated the company is reviewing its options and may soon file an amended or new complaint with CBSA. 

"While we are disappointed with the Tribunal's decision, Tidewater Renewables remains committed to free and fair trade in Canada's renewable diesel market,” said Jeremy Baines, CEO of Tidewater Renewables. “Our view remains that the facts support a finding that unfair trade practices by the United States have caused a flood of subsidized and dumped renewable diesel into Canada. This flood of imports has significantly injured Tidewater, currently the sole Canadian producer of renewable diesel.”