Ottawa initiates a rare trade investigation into rising imports of frozen peas, canned corn, and other preserved vegetables, as local producers report significant market pressure.
Inquiry Launch Details
On March 13, Finance Minister François-Philippe Champagne instructed the Canadian International Trade Tribunal (CITT) to launch a safeguarding inquiry targeting these imports. Department of Finance spokesperson Caroline Feggans stated, “The increase appears to be the result of unforeseen developments in global trade.” She noted that actions by World Trade Organization members to curb their own imports of frozen and canned vegetables have likely boosted volumes entering Canada.
U.S. President Donald Trump’s tariffs, for instance, have redirected foreign suppliers toward new markets, including Canada, exacerbating local concerns over market flooding.
Timeline and Potential Outcomes
Public hearings commence on June 15, with the final report due in September. A favorable outcome could impose tariffs or other restrictions on these vegetable imports. Unlike anti-dumping duties, safeguard measures apply broadly to all countries—except any specified exemptions—and serve as temporary responses to urgent situations.
Industry Push Behind the Probe
The inquiry stems from a request by the Canadian Association of Vegetable Growers and Processors, established in January. Spokesperson Alik Angaladian of Maple Leaf Strategies described it as “the voice of Canadian vegetable growers, harvesters, employees, and processors from coast to coast to coast.”
Several major processors have voiced worries about foreign competition and urged federal action. Quebec-based Nortera Foods, supported by Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ, aligns with these issues. In a statement, the company highlighted “the impact of increased volumes of low-priced imports on domestic production.” Nortera owns brands like Del Monte, Arctic Gardens, Green Giant, and Le Sieur.
Nortera’s Operational Challenges
Nortera recently announced closures, including its Lethbridge, Alta., facility and a plant in Saint-Césaire, Que. The latter shift includes relocating some staff to its Saint-Denis-sur-Richelieu site, backed by a $28-million expansion. A company press release pointed to a “market increasingly challenged by international imports.”
Evidence of Import Surge
Statistics Canada data shows sharp rises in imports of frozen peas, sweet corn, and canned beans last year. Chinese shipments jumped over 40 percent in January 2025 compared to the prior month, reaching $66 million for selected products—a 25 percent increase from 2024 levels. Although volumes later declined, they exceeded previous-year figures.
Trade lawyer Rambod Behboodi of Borden Ladner Gervais LLP explained that the CITT must demonstrate an unforeseeable import surge directly harming domestic industry, distinct from general economic factors.
Broader Trade Implications
The Finance Department also eyes a separate safeguarding probe into wood cabinets and vanities. Behboodi observed, “Trade diversion is a natural consequence of trade barriers. As soon as a market is closed, whatever is left outside the door has to find some other outlets,” signaling potential for more such inquiries.
