April 23, 2024

CBSA initiates dumping and subsidizing investigations on certain pea protein from China

The Canada Border Services Agency (CBSA) launched investigations to determine whether certain pea protein from China are being sold at unfair prices in Canada and whether these goods are being subsidized.

The investigation is a result of a complaint filed with the CBSA by Canadian producers in Manitoba. The complainants allege that as a result of an increase of the volume of the dumped and subsidized imports from China, they have suffered material injury in the form of lost market share, lost sales, a lack of growth, price undercutting, price suppression, reduced profitability, a decline in the return on investments, negative effects on inventories, cash flow, and the ability to raise capital, a decline in capacity utilization, and negative effects on employment.

The Canadian market for certain pea protein has been estimated to be approximately $54 million in 2022 and $45 million in 2023.

In the next step of the investigation the Canadian International Trade Tribunal (CITT) will determine, by June 21, 2024, whether the imports are harming Canadian producers.

Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair prices and/or are being subsidized, and will make a preliminary decision by July 22, 2024.

Anti-dumping and/or countervailing duties could eventually be applied to the goods under investigation.

Links:

- CBSA Notice of Initiation of Investigation

- CITT Preliminary injury inquiry PI-2024-001