Trade Complaint Launched Against Imported U.S. Renewable Diesel (HVO)

Tidewater Renewables Ltd. announced Jan. 6 that it has filed a countervailing and anti-dumping duty complaint with the Canada Border Services Agency (CBSA) in late 2024 in response to renewable diesel imports from the United States. The company says these imports are causing serious harm to the renewable diesel industry in Canada and that legal action is needed to protect the level playing field.

Tidewater Renewables has retained outside trade law counsel to assess the market distortions caused by U.S. renewable diesel subsidy and dumping practices and to propose a legal solution. If the complaint is successful, the Company anticipates that a tariff of 50 to 80 cents per liter (approximately 35 cents to 56 cents per liter) could be imposed at the Canadian border on U.S. imports of renewable diesel fuel, which equates to $1.32 to $2.12 per gallon.

According to Tidewater Renewables’ estimates, U.S. renewable diesel imports receive an average of 40 to 60 percent of the subsidy and dumping benefits. We support healthy competition, but we can’t compete in a market that is heavily distorted by foreign subsidies and dumping practices,” said Jeremy Baines, CEO of Tidewater Renewables. The legal action was taken to restore fair competition, protect employee and shareholder interests, and ensure the long-term growth of Canada’s renewable diesel industry.”

Under the Special Import Measures Act, the CBSA may initiate an investigation in February 2025 and impose preliminary tariffs in May. Final tariffs could be implemented in September following a ruling by the Canadian International Trade Tribunal.