At Gowling WLG, our International Trade Group is closely observing the commencement of investigations by the Canada Border Services Agency (CBSA) into the pricing and subsidization of pea protein imports from China, prompted by claims of economic harm to Canadian producers.

Vegan protein is simply protein derived from plant-based sources, such as pea, rice, and soy proteins. Whey protein, along with casein, is derived from milk. It's a source of protein and essential amino acids, which are the building blocks of protein that occur naturally within the body. Whey is a rich mix of milk proteins which is produced as a by-product of cheese making.

Canadian companies Nutri-Pea GP Inc. and Roquette Canada Ltd. have raised concerns over significant market disruptions caused by these imports, including loss of market share, sales declines, and adverse effects on profitability and workforce.

Canadian importers of pea protein from China and Chinese exporters will be impacted by the investigation and may face very high import duties and market disruption because of the proceedings. The timelines move very fast and it is important for importers and exporters to participate early.

Investigation timelines:

  • Canadian International Trade Tribunal (CITT) decision: Expected by June 21, 2024
  • CBSA preliminary findings: Anticipated by July 22, 2024

Subject goods information:

  • Definition: High protein content (HPC) pea protein from China, in all physical forms, with at least 65 per cent protein on a dry weight basis (Jones factor of 6.25), excluding texturized pea protein and those incorporated into finished products where they are further processed.
  • Tariff classification numbers:
    • 3504.00.90.00
    • 2106.10.00.00

Note: The above tariff headings may include both subject and non-subject goods.

A detailed statement of reasons will be available on the CBSA's website within 15 days from the investigation's start. For further information and for assistance with participating in the CBSA investigation and/or the CITT inquiry, please contact a member of our International Trade team.