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INVESTIGATION OF RENEWABLE DIESEL ENDS

CITT CONCLUDES NO REASONABLE INDICATION OR THREAT OF INJURY

While we have written about a number of anti-dumping and subsidy investigations by the Canada Border Services Agency (“CBSA”) where Anti-Dumping Duties and/or Countervailing Duties (ADD/CVD) have been imposed, infrequently such investigations can also terminate without the imposition of any ADD/CVD. 

The recent decision by the Canada International Trade Tribunal (“CITT”) into the alleged dumping and subsidizing of Renewable Diesel originating or exported from the United States serves as a timely example of such a termination.

Background

On March 6, 2025, the Canada Border Services Agency (“CBSA”) issued a Notice of Initiation of Investigation under the Special Import Measures Act (“SIMA”) in respect of the alleged dumping and subsidizing of Renewable Diesel originating or exported from the United States, which we have previously written about here.

While the CBSA investigation was ongoing, the CITT conducted its separate Preliminary Injury Inquiry, as required by subsection 34(2) of SIMA (with its parallel notice being issued March 7, 2025).

CITT Preliminary Determination of Injury

On May 5, 2025, the CITT made a Preliminary Determination “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 threatening to cause injury” pursuant to paragraph 35(1)(b) of SIMA.

As a result of that determination, the CITT terminated it preliminary injury inquiry as required by paragraph 35(3)(a) of SIMA.  Under subparagraph 35(3)(b)(i), the CITT is required to give notice of termination to the CBSA, which subsequently triggered the termination of the CBSA’s parallel investigation on May 9, 2025, by operation of paragraph 35(2)(a) of SIMA.

Why Do I Care?

The CITT’s Preliminary Determination illustrates the importance of making submissions as part of the CITT preliminary injury inquiry.  Just because the CBSA has commenced an anti-dumping investigation does not mean the CITT will automatically find injury, or that the CBSA will find dumping.  It is not always a foregone conclusion that the investigation will result in the imposition of ADD/CVD.

Accordingly, businesses that may be affected by the investigations should also place a premium on making submissions within the CITT’s parallel investigation, rather than solely focusing on the CBSA’s investigation.  Success within the CITT’s preliminary injury inquiry can terminate the CBSA investigation by operation of the provisions of SIMA.

Takeaways

Given the short timelines for participating in a CITT inquiry, businesses which might be impacted by an investigation under SIMA should immediately contact their lawyers if they think they might want or need to participate – regardless of whether or not they have received an RFI/Questionnaire!

Among other alternatives, their businesses can also request that the CITT consider excluding your products from the “Subject Goods” definition to which the inquiry – and its decisions – applies.  Again, contacting your lawyer immediately to discuss possible next steps and receive a recommendation is invaluable!

For help with a preliminary injury inquiry, please click here.

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