Canada Initiates Safeguard Inquiry into Imports of Canned and Frozen Vegetables, Considers Future Investigation into Wood Products

The Government of Canada directed the Canadian International Trade Tribunal (CITT) to conduct a safeguard inquiry into imports of certain canned and frozen vegetables (Vegetable Safeguard Inquiry) and is considering directing the CITT to initiate a safeguard inquiry on wood cabinets and vanities, hardwood flooring and engineered wood storage furniture. The CITT’s Notice of Commencement, issued March 16, 2026 is available here.

The Vegetable Safeguard Inquiry was publicly announced by Finance Canada on March 13, 2026. The Order in Council is here. The order follows a request from the Canadian Association of Vegetable Growers and Processors and forms part of a broader government response to alleged trade diversion causing increased imports that are causing/threatening serious injury to the Canadian industry.

The Government continues to assess the merits of an urgent separate safeguard request from the Canadian Wood Products Alliance. No direction has been provided to the CITT to initiate an inquiry at the time of publication.

What Importers, Exporters and Canadian downstream purchasers need to know

• The investigation is focused on vegetable goods classified under several tariff items under Headings 7.10 and 20.05. Fresh or dried vegetables, ready-to-eat meals and vegetables altered into purees, powders, juices, spreads dips or pastes are excluded from the investigation.
• At this time, the Government has not introduced a provisional safeguard.
• The CITT has been given 180 days to investigate and provide findings and recommendations to the federal government. A recommendation is due by September 9, 2026.  The CITT’s safeguard guidelines are available here.
• The CITT has not yet announced its investigations schedule; however, the CITT will initiate the inquiry shortly, posting questionnaires on its website here. Notices of participation are due within 15 days of initiation. The CITT’s guidelines are available here.
• The investigation schedule is available here. Importer, foreign producer, union, and domestic producer questionnaires are available here (due April 10, 2026). Notices of participation are due by April 2, 2026. A hearing is scheduled for June 15, 2026. The CITT will use this hearing to clarify evidence and witnesses will be selected by the Tribunal by interest parties whom have filed witness statement.     
• In assessing injury/threat of injury, the Tribunal’s period of investigation begins on January 1, 2023.
• The CITT will not consider product exclusions during its inquiry.
• The CITT must consider the effect of any proposed remedy on the affordability for consumers of certain vegetable goods and food security.

What is a safeguard?

Safeguards are a WTO-compliant emergency measure that are meant to respond to “serious injury” or the “threat of serious injury” caused by an unforeseen increase in the volume of imports. Safeguards may take the the form of tariffs, tariff rate quotas (TRQ), or both.

Unlike Canada’s AD/CVD regime administered under the Special Import Measures Act, a safeguard is exceptional and addresses imports of fairly traded goods.

Role of the Canadian International Trade Tribunal

The inquiry will be conducted by the CITT, an independent quasi-judicial body responsible for safeguard investigations under Canada’s trade remedy framework. The Tribunal examines whether increased imports are causing or threatening to cause serious injury to domestic producers of like or directly competitive goods and may recommend remedial measures to the Government of Canada. The CITT’s inquiry is constrained by the WTO’s Agreement on Safeguards.

The Tribunal’s role is advisory. Following the investigation, it may recommend measures such as:

• a safeguard surtax on imports, or
• quantitative restrictions, including import quotas or TRQs.  

The Government ultimately decides whether to impose a safeguard and what form it will take. This is the third safeguard investigation undertaken by the CITT, but the first to address non-steel goods.

Legal Framework for Safeguard Measures

Canada can impose safeguard measures up to four years under WTO rules, which can be extended for an additional four years. Any safeguard measures in force for longer than a year, must have restrictions removed each year (e.g. the amount of surtax decreases or quota volumes increase).

Canada’s safeguard regime is primarily implemented under the Customs Tariff.  Where quantitative restrictions are used instead of surtaxes, safeguards may also be implemented through the Import Control List and permit regime under the Export and Import Permits Act, administered by Global Affairs Canada. 

What Comes Next

Following the Order in Council:

1. The CITT initiates a public inquiry into imports of the subject goods. Notices of participation will be due within 15 days of initiation.
2. The CITT issues questionnaires for domestic producers, purchasers, foreign producers, and other interested parties, seeking information on the volume and value of imports, domestic production and sales, as well as financial results of domestic producers.
3. The CITT compiles questionnaire responses in to an investigation report, which is later distributed to participants. Parties will have an opportunity to submit written submissions on the legal test to implement a safeguard and to advocate for or against a safeguard at a public (and in-camera) hearing conducted by the CITT.
4. Within 180 days, the Tribunal must report its findings to the Government and may recommend safeguard measures.
5. The Governor in Council may then decide whether to implement safeguard measures in the form of TRQs or surtaxes.