Tidewater Renewables files countervailing and anti-dumping complaint against US renewable diesel

In Canada, Tidewater Renewables Ltd. has taken decisive action to protect fair competition in the Canadian renewable diesel market by filing a countervailing (anti-subsidy) and anti-dumping duty complaint with the Canada Border Services Agency at the end of 2024. The complaint targets unfairly traded imports of renewable diesel from the United States that significantly undermine the Canadian industry.

As previously disclosed, Tidewater Renewables engaged external trade law counsel for the purposes of evaluating legal options to address market distortions caused by unfair U.S. subsidies and dumping practices, including advising on and preparing the Complaint. This action reflects the Corporation’s commitment to ensuring a level playing field for its production and sale of renewable diesel and BC LCFS and CFR emission credits.

If Tidewater Renewables is successful in this process, which management believes has a reasonably high likelihood of success, duties valued between $0.50 and $0.80 per litre could be imposed at the Canada/U.S. border to counter the subsidized and dumped U.S. renewable diesel imports. This reflects the Corporation’s estimates that U.S. renewable diesel imports benefit from an average amount of subsidization and dumping of between 40% to 60%. Tidewater Renewables believes these measures are essential to remedy and offset the significant impact of U.S. subsidies, such as the Blender’s Tax Credit and the forthcoming Production Tax Credit, which enable U.S. producers to export renewable diesel to Canada at artificially low prices.

In accordance with the Special Import Measures Act, CBSA’s investigation is expected to proceed swiftly. CBSA may publicly initiate an investigation in February 2025, with preliminary duties potentially being imposed as early as May 2025. Final duties, which will be subject to a ruling by the Canadian International Trade Tribunal, may be imposed by September 2025.  If final duties are imposed at the levels expected by management, they would support long-term market stability for Tidewater Renewable’s renewable diesel production and its related emission credits.