Pea protein dumping and subsidy decisions

Summary#

The Canada Border Services Agency (CBSA) announced decisions on investigations into pea protein imported from China under the Special Import Measures Act on October 21, 2024. It has ended some investigations for specific exporters but made final dumping and subsidizing determinations for other Chinese exporters; the Canadian International Trade Tribunal (CITT) will decide whether Canadian industry was injured by November 19, 2024.

What it does#

• Terminates the dumping investigation for pea protein exported from China by Shandong Jianyuan Bioengineering Co., Ltd., Yantai Shuangta Food Co., Ltd., Yantai Oriental Protein Tech Co., Ltd., and Yantai Yiyuan Biological Engineering Co., Ltd. because those goods were found not to be dumped.
• Makes a final determination of dumping for all other exporters from China that were not cleared.
• Terminates the subsidy investigation for pea protein exported from China by Yantai T.Full Biotech Co., Ltd. because the subsidy was judged insignificant.
• Makes a final determination of subsidizing for all other exporters from China for which the subsidy probe was not terminated.
• Says provisional duties will continue to be imposed on the subject goods from China until the CITT issues its injury decision by November 19, 2024.
• Says provisional duties will no longer be imposed on imports for which the dumping and/or subsidizing investigations were terminated, and any provisional duties paid or security posted for those imports will be refunded as appropriate.
• Notes the subject goods are usually classified under tariff numbers 3504.00.90.00 and 2106.10.00.00.
• The CBSA will issue a Statement of Reasons within 15 days of the decisions; it will be posted on the CBSA website.

Who's affected#

• Importers in Canada who bring pea protein from China.
• Chinese exporters of pea protein — those named above were cleared of dumping or subsidy issues; other exporters face final findings.
• Canadian industry that makes or processes pea protein (the CITT is examining whether they were injured).
• Distributors, food manufacturers, and other businesses that use pea protein as an ingredient may feel downstream effects from duties or price changes.

Why it matters#

• If the CITT finds that dumping or subsidizing hurt Canadian producers, antidumping and/or countervailing duties could be applied to future imports, raising costs for importers and possibly for food-makers and consumers.
• Some exporters were cleared, so imports from those firms should no longer face provisional duties and any paid duties for those imports may be refunded.
• The situation creates near-term uncertainty for supply and pricing of pea-protein ingredients until the CITT decision on November 19, 2024.