Canada will investigate whether imports of U.S. renewable diesel are being dumped and subsidized, the Canadian Border Services Agency announced on Thursday.
“These practices can harm Canadian industries by undercutting Canadian prices, which undermines fair competition,” it said in a news release.
The investigation was launched after Tidewater Renewables Ltd. filed a complaint with the CBSA. Tidewater Renewables is a British Columbia-based renewable energy company.
Tidewater alleges that due to an increase in the volume of dumped and subsidized imports from the U.S., they lost market share and sales and saw price depression and reduced profitability, the CBSA said.
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“We believe the investigation is an important step in levelling 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”, said Tidewater CEO Jeremy Baines.
The complaint and investigation are not related to the ongoing trade dispute with the U.S., the company said.
The Canadian International Trade Tribunal will investigate if imports are harming Canadian producers, and will issue a decision in early May. The CBSA will look into whether imports are being sold at unfair prices or are being subsidized. That preliminary decision will come in early June.