Canada Tribunal Rules Imports of U.S. Canned Vegetables Hurt Domestic Food Sector

By Paul Vieira

OTTAWA--A Canadian quasijudicial panel said imported canned vegetables mostly from the U.S. caused serious financial strains for domestic food processors, and recommends that the government impose import limits to help the sector.

The Canadian International Trade Tribunal delivered its ruling Wednesday at a time of heightened trade tensions between the U.S. and Canada. Any move to upset U.S. exporters could become a fresh flashpoint in the trade conflict, highlighted by hefty tariffs on both U.S. and Canadian goods and, in some instances, a ban on certain products.

At the behest of local vegetable growers and processors, the Liberal government asked the trade tribunal this year to investigate whether imports of foreign canned vegetables were harming Canada's food sector. Food processors said they faced rising costs associated with 50% U.S. tariffs on steel and aluminum. Canadian processors import the vast majority of their empty cans from the U.S.

In June, Finance Minister François-Philippe Champagne slapped a 10% tariff on imported canned vegetables although certain products from the U.S., Mexico, Israel and Chile were exempted.

A spokesman for the Finance Minister said officials would review the decision to determine the next steps.

The ruling indicates total imports of canned vegetables into Canada rose in 2025 by 28% from the previous year, with the U.S. accounting for a substantial portion of the total volume growth.

The three-member panel said that the scale of canned-vegetable imports is "a principal cause of serious injury to the domestic industry." The growth rate of U.S. imports in 2025 from the prior year was "appreciably greater than the growth rate of total imports from all sources over the same period. Considering the above, U.S. imports must be deemed to contribute importantly to serious injury."

The pain was particularly acute at Nortera Foods, which the tribunal identified as the biggest processor of canned food by a significant margin. A surge in imports in canned vegetables "resulted in lost sales or reduced sales volumes and a significant erosion of Nortera's gross margins," the judgment said. Nortera, based in suburban Montreal, also warned of plant closures.

As relief, the tribunal recommends a three-year tariff-rate quota on imported canned vegetables from certain countries, led by the U.S., but also from China and European Union members. Under this proposed scheme, about 30 million pounds of canned vegetables--or the total import volumes in 2024--can enter Canada duty free before facing a surtax of between 40% and 50%.

Canadian government data indicate that the food- and beverage-processing industry is among the largest manufacturing industries in Canada in terms of value of production.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

September 09, 2026 19:47 ET (23:47 GMT)