On June 20, 2024, the Canadian International Trade Tribunal (the “CITT”) issued a preliminary determination of injury, concluding that there was evidence that the alleged dumping and subsidizing of certain pea protein from China (the “Subject Goods”) has caused material injury to the domestic industry.

More details, including the definition of the Subject Goods and product inclusion can be found in the determination here.

Background Information

On April 23, 2024, following the initiation of an anti-dumping investigation by the Canada Border Services Agency (the “CBSA”), the CITT initiated a preliminary injury inquiry in respect of the alleged dumping and subsidizing of pea protein, which we covered in a previous blog post. 

Reasons for the CITT Determination

In its examination, the CITT identified several factors contributing to its finding of material injury to the domestic industry:

• A significant increase in imports of the Subject Goods from 3,392 metric tonnes in 2021 to 3,480 metric tonnes in 2023.
• An indication of price undercutting and price suppression.
• Chinese producers are highly export-oriented, and China has excess capacity that is more than enough to overwhelm the Canadian market.

Consequences of the Preliminary Determination

Following the CITT’s affirmative preliminary determination, all eyes are now on the CBSA which is conducting its own concurrent dumping investigation.  If the CBSA determines that dumping is taking place, it will impose provisional anti-dumping duties (“ADDs”) and countervailing duties (“CVDs”) on the Subject Goods.  Provisional duties are generally calculated and assessed based on a percentage of the export price of the Subject Goods imported into Canada during the provisional period.  The CBSA’s preliminary determination is expected by July 22, 2024.

Final Dumping Investigation and Injury Determination

Within 120 days of the CBSA’s preliminary determination, the CITT must issue a finding to finally conclude their inquiry, and issue reasons for their finding within another 15 days.

Concurrently, the CBSA will have to make a final determination within 90 days following its preliminary determination (which will include issuing normal values for cooperating producers), and issue reasons explaining the decision within another 15 days.

How to Get Involved

Given the potentially significant duties that may be imposed depending on the result of the inquiry, affected businesses should keep an eye on the proceedings and take steps as necessary to ensure their interests are represented.

Interested parties should have already responded to the CBSA’s questionnaire.  Those who have not yet filed a response to the CBSA should contact counsel as soon as possible to try and potentially “catch up” in the process.

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