Tidewater Renewables Ltd. has filed a countervailing and anti-dumping duty complaint with the Canada Border Services Agency (CBSA) to challenge unfair trade practices in the Canadian renewable diesel market. The complaint targets renewable diesel imports from the United States, accusing U.S. producers of benefitting from significant subsidies and engaging in dumping practices that are harming the Canadian industry.

Tidewater's complaint seeks to impose countervailing and anti-dumping duties on U.S. renewable diesel imports, with estimates ranging between $0.50 and $0.80 per liter. This reflects the company's assessment that U.S. imports are benefiting from an average subsidy and dumping margin of 40% to 60%. If successful, the duties would serve to level the playing field, making it more difficult for U.S. producers to continue selling renewable diesel at prices that undercut Canadian production.

The move follows a thorough evaluation of trade law options by Tidewater Renewables, which engaged external legal counsel to address what it claims are distortions in the renewable diesel market caused by unfair U.S. practices. The company asserts that U.S. renewable diesel imports, bolstered by government subsidies such as the Blender's Tax Credit and the forthcoming Production Tax Credit, are being sold in Canada at artificially low prices, undermining domestic producers' ability to compete fairly.

Jeremy Baines, CEO of Tidewater Renewables, emphasized that the company supports healthy competition but cannot sustain its operations in a market distorted by foreign subsidies and dumping. "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," Baines said.

The complaint comes at a critical time for the Canadian renewable diesel sector, as the U.S. government’s subsidies are making it increasingly difficult for Canadian producers like Tidewater Renewables to remain competitive.

Under the Special Import Measures Act, the CBSA is expected to investigate the complaint and may publicly initiate an inquiry in February 2025. Preliminary duties could be imposed as soon as May 2025, with final duties, subject to a ruling by the Canadian International Trade Tribunal, potentially taking effect by September 2025.

Tidewater Renewables has expressed confidence in the likely success of its complaint, believing that the imposed duties would help stabilize the market for renewable diesel production in Canada. The company also hopes that these measures will ensure long-term sustainability and provide a more equitable environment for its operations, which include the production of renewable diesel as well as the generation of British Columbia Low Carbon Fuel Standard (BC LCFS) and Clean Fuel Regulation (CFR) emission credits.