Tidewater files trade complaint to address Canadian imports of US renewable diesel

Tidewater Renewables Ltd. announced Jan. 6 that it has filed a countervailing (antisubsidy) and antidumping duty complaint with the Canada Border Services Agency at the end of 2024 to “protect fair competition in the Canadian renewable diesel market” against what the company says is “unfairly traded imports of renewable diesel from the United States that significantly undermine the Canadian industry.”

Tidewater Renewables engaged external trade-law counsel to evaluate legal options to address what it claims are market distortions caused by unfair U.S. subsidies and dumping practices.

“This action reflects the corporation’s commitment to ensuring a level playing field for its production and sale of renewable diesel and BC LCFS and CFR emission credits,” the company stated.

If Tidewater Renewables is successful in its complaint, which it said is likely, duties valued between 50 Canadian cents and 80 Canadian cents (between 35 U.S. cents and 56 U.S. cents) per liter—or between USD$1.32 and USD$2.12 a gallon—could be imposed at the border to counter what Tidewater claims is subsidized and dumped U.S. renewable diesel.

These monetary figures reflect the company’s estimates that U.S. renewable diesel imports benefit from an average amount of subsidization and dumping of 40 percent to 60 percent.

According to Tidewater Renewables, these measures are “essential to remedy and offset the significant impact of U.S. subsidies, such as the blenders tax credit and the forthcoming production tax credit, which enable U.S. producers to export renewable diesel to Canada at artificially low prices,” the company stated.

“Tidewater Renewables supports healthy competition in the renewable diesel market but cannot compete in a market severely distorted by foreign subsidies and dumping practices,” said Jeremy Baines, CEO of Tidewater Renewables. “Our legal action is necessary to restore fairness in the marketplace, protect our employees and shareholders, and secure the long-term viability of Canada’s renewable diesel industry.”

In accordance with the Special Import Measures Act, Tidewater Renewables said the investigation is expected to proceed swiftly.

CBSA may publicly initiate an investigation in February, with preliminary duties potentially being imposed as early as May.

Final duties, which will be subject to a ruling by the Canadian International Trade Tribunal, may be imposed by September. 

If final duties are imposed at the levels expected by Tidewater Renewables’ management, the company said they would support long-term market stability for its renewable diesel production and related emission credits.

“This important step is part of Tidewater Renewables’ broader commitment to supporting Canada’s energy transition and ensuring the integrity of the Canadian renewable fuels market,” the company stated.