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CITT RECOMMENDS QUOTA ON CANNED VEGGIES

10% SURTAX EXPIRES IN JANUARY 2027, WILL GOVERNMENT ADOPT QUOTA?

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On September 9, 2026, the Canadian International Trade Tribunal (“CITT”) submitted its report to the Minister of Finance in its safeguard inquiry into imports of certain vegetable goods (the “Subject Goods”). The CITT found serious injury from canned vegetable imports and recommended a tariff rate quota (“TRQ”) be imposed going forward, but found no injury for frozen vegetables.

Background Information

On March 13, 2026, the Government of Canada, through an Order in Council, directed the CITT to conduct a global safeguard inquiry under the Canadian International Trade Tribunal Act, following a request from the Canadian Association of Vegetable Growers and Processors. As we previously reported, the CITT commenced its inquiry on March 16, 2026. The Subject Goods include:

Frozen and canned corn, peas, green beans, wax beans, mixes of peas and carrots, mixed vegetables, white, black, red or pinto beans and chickpeas, whether packaged for retail, foodservice, industrial or other use […]

Fresh or dried vegetables, certain prepared meals and processed vegetable products were excluded, and in June 2026 when the Government also imposed a provisional safeguard surtax of 10% on global imports of canned vegetables under the Certain Canned Vegetable Goods Surtax Order, frozen vegetables were also excluded.

Serious Injury Found

Canned vegetable imports were found to have increased by 34% from 2023 to 2025, which the CITT linked to trade diversion caused by US trade measures and EU anti-dumping duties on Chinese sweetcorn.

Accordingly, the CITT found the domestic industry suffered a “significant overall impairment”, including declining sales, reduced capacity utilization and a 10% drop in employment, including the January 2026 closure of Nortera’s St-Césaire canning facility. The CITT further found the increased imports to be the principal cause, citing significant price undercutting, depression, and suppression.

Recommended Remedy

The CITT recommended a three-year Tariff Rate Quota (“TRQ”), with a declining surtax to be applied on imports above specified quotas as outlined in the chart below:

The CITT’s proposed TRQ would be allocated on a quarterly first-come, first-serve basis (similar to the TRQs for steel goods).

What Does this Mean for Me?

The Federal Government is currently reviewing the CITT’s report with a view to announcing a decision in the near future. In the meantime, the 10% surtax under the Certain Canned Vegetable Goods Surtax Order will continue to apply until January 5, 2027.

If adopted, the TRQ will limit duty-free access for canned vegetables from non-exempt countries. With a first-come, first-served quota, importers should begin planning now – just in case.

If your business imports canned vegetables, you should seek Canadian legal advice immediately. Failure to consult with Canadian Legal Counsel on this issue could lead to a costly assessment by the CBSA!

For help with a Safeguard Inquiry, please click here.