LINCOLN, Neb. (DTN) -- The Canadian government has opened a dumping investigation into renewable diesel imports from the U.S., after the only Canadian producer in existence filed an official complaint at the end of 2024.
The Canadian Border Services Agency on Thursday said it is investigating whether renewable diesel from the U.S. could be "undercutting Canadian prices, which undermines fair competition," the government said in a news release.
Canada's first renewable diesel company, Tidewater Renewables Ltd. alleges in its complaint that U.S. imports are hurting its business. Tidewater's plant is based in Calgary, Alberta, and launched production in 2023.
"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 Canadian government said on Thursday.
Earlier this week, the Trump administration implemented new tariffs on a variety of goods from Canada, Mexico and China. That includes a 10% tariff on biofuels entering the U.S. from Canada.
On March 4, the Canadian government announced it was considering retaliatory tariffs on U.S. biodiesel imports.
On the dumping investigation, the Canadian Border Services Agency (CBSA) is working with the Canadian International Trade Tribunal, which is launching a preliminary inquiry into the claims. The tribunal is set to issue a decision by May 5, 2025.
Concurrently, the CBSA is expected to make preliminary decisions by June 4, 2025.
The Canadian market for renewable diesel imports is estimated at more than $1.4 billion annually.
Tidewater officials said in a news release on Thursday that they anticipate provisional duties to be imposed at the U.S./Canada border within 90 days.
"Final duties, which would be in place for five years and can be renewed every five years thereafter, could be imposed by September 2025 following a ruling by the Canadian International Trade Tribunal," the company said.
If final duties are imposed at the levels expected by management, they will be valued between $1.89 and $3.03 per gallon of renewable diesel imported from the U.S.
The company said its complaint and the investigation are unrelated to the ongoing trade dispute.
"Tidewater Renewables supports free and fair trade in Canada's renewable diesel market," the company's CEO Jeremy Baines said in a statement.
"We believe the investigation is an important step in leveling 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."
Paul Winters, director of public affairs and federal communications at Clean Fuels Alliance America, said the relationship between biofuels producers in both countries is important.
"Biodiesel and renewable diesel trade between Canada and the U.S. has traditionally been based on relative distance to market -- i.e., Midwest U.S. producers send product north, coastal Canadian producers send product south," Winters said.
"And of course, the western Canadian producers aim for the low-carbon markets on the U.S. West Coast. A U.S.-Canada trade war is not in anyone's interest."
Todd Neeley can be reached at todd.neeley@dtn.com
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