Pea Protein Duties and Rebar Probe

Summary#

The Canada Border Services Agency (CBSA) announced two trade actions in the Canada Gazette on July 22–26, 2024. It extended the preliminary investigation into concrete reinforcing bar imports and it made preliminary findings of dumping and subsidizing for high protein pea protein from China, which triggers provisional duties on certain imports.

What it does#

• For concrete reinforcing bar:

  • The CBSA extended the preliminary phase of its investigation under the Special Import Measures Act from the usual 90 days to 135 days because the case is complex.
  • A preliminary decision or termination must be made on or before September 13, 2024.

• For high protein content pea protein:

  • The CBSA made preliminary determinations of dumping and subsidizing for high protein pea protein originating in or exported from the People’s Republic of China.
  • Provisional duties are payable on subject goods released from CBSA during the period starting July 22, 2024 and ending when the investigations stop, when the Canadian International Trade Tribunal (CITT) makes an order or finding, or when an undertaking is accepted.
  • The goods are described as pea protein with a minimum protein content of 65 percent (dry weight), excluding texturized pea protein and certain pea protein already incorporated into finished products.
  • The tariff numbers that may be used for these goods include 3504.00.90.00 and 2106.10.00.00, but those codes also cover non-subject goods.
  • The CITT will conduct a full inquiry into injury and is expected to issue an order or finding no later than 120 days after it receives notice of the CBSA’s preliminary determinations.
  • The Tribunal’s inquiry schedule in the notice includes participant deadlines and a hearing starting on October 21, 2024, with a participant list to be issued on September 10, 2024 and participation forms due August 6, 2024 (as set out in the Tribunal notice).

Who's affected#

• Importers, exporters, and distributors of:
  • concrete reinforcing bar from Bulgaria, Thailand, and the United Arab Emirates;
  • high protein pea protein from the People’s Republic of China.
• Canadian businesses that use pea protein (for example, food processors and ingredient suppliers) and their customers.
• Customs brokers and freight forwarders who handle affected shipments.
• Some goods classified under the listed tariff numbers that are not the subject of the investigations may still appear affected because the tariff codes cover multiple products.

Why it matters#

• Provisional duties on pea protein can raise the cost of imported ingredients. That may increase input costs for food manufacturers and could flow through to prices consumers see.
• Extending the rebar investigation delays a final decision. Importers and domestic producers won’t know the final outcome until at least September 13, 2024, which creates uncertainty for construction and steel supply planning.
• The Tribunal’s full inquiry and timelines mean these matters could affect trade and supply chains for several months as decisions and possible duties are resolved.