Canadian biofuels producer Tidewater Renewables has asked the federal government to impose countervailing and anti-dumping duties on US renewable diesel imports.
In its complaint to the Canada Border Services Agency (CBSA), Tidewater alleged the nation’s renewable diesel market was being impacted by US producers who exported volumes to Canada at artificially low prices due to US tax incentives – the former blender’s tax credit and pending Clean Fuel Production Credit, the 8 January report said.
The complaint was also aimed at reducing pressure on emissions credits issued by British Columbia’s low-carbon fuel standard (LCFS) and Canada’s Clean Fuel Regulation, Tidewater said in a statement on its website on 6 January.
Tidewater said duties of C$0.50-0.80/litre (35-56¢/litre) could be imposed at the border on US renewable diesel if the complaint was upheld, reflecting an estimated subsidy and dumping benefit to US producers of 40/60%.
“Tidewater Renewables supports healthy competition in the renewable diesel market but cannot compete in a market severely distorted by foreign subsidies and dumping practices,” Tidewater Renewables CEO Jeremy Baines said.
“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.”
While the CBSA is responsible for investigating and verifying complaints, the Canadian International Trade Tribunal (CITT) is responsible for determining if those activities have impacted the Canadian industry.
For a CBSA investigation to proceed, the complaint must have support from producers representing at least 25% of Canadian output. Evidence of injury could then include lower prices and lost sales, reduced market share or decreased profits, among other factors.
If the CITT found activities had impacted the Canadian industry, it would grant the CBSA authority to impose import duties, in this case intended to offset the alleged unfair price advantage held by US exporters, the report said.
Preliminary duties could be imposed as early as May, following a preliminary injury finding by the CITT. Depending on the CITT’s ruling, final duties could be imposed by September, Tidewater said.
In December, Tidewater had cited challenging economic conditions in its decision to re-evaluate renewable diesel production from March onwards at its 3,000 barrels/day (bpd) renewable diesel plant in British Columbia, Argus Media reported on 8 January.
