Certain Canned Vegetable Goods Surtax Order: SOR/2026-135

Canada Gazette, Part II, Volume 160, Number 13

Registration
SOR/2026-135 June 19, 2026

CUSTOMS TARIFF

P.C. 2026-645 June 19, 2026

Whereas it appears to the satisfaction of the Governor in Council, on the basis of a report of the Minister of Finance, that the goods set out in Schedule 1 to the annexed Certain Canned Vegetable Goods Surtax Order are being imported under such conditions as to cause or threaten serious injury to domestic producers of like or directly competitive goods;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Certain Canned Vegetable Goods Surtax Order under subsection 55(1) of the Customs Tariff footnote a.

Certain Canned Vegetable Goods Surtax Order

Surtax of 10%

1 (1) The following canned vegetables that are classified under a tariff classification number set out in Schedule 1 — or that are classified under a tariff classification number of Chapter 99 of the List of Tariff Provisions and that are otherwise classifiable under a tariff classification number set out in Schedule 1 — are subject to a surtax in the amount of 10% of their value for duty for a period of 200 days beginning on the day on which this Order comes into force:

For greater certainty

(2) For greater certainty, canned vegetables are subject to the surtax without regard to the following:

Exceptions

2 (1) The following goods are not subject to the surtax:

Origin of goods

(2) For the purposes of paragraphs 1(a) and (b), the origin of the goods is determined in accordance with the rules of origin set out in the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations or the Determination of Country of Origin for the Purpose of Marking Goods (Non-CUSMA Countries) Regulations.

Canadian International Trade Tribunal report

3 Beginning on the day on which the Canadian International Trade Tribunal submits the report referred to in section 7 of Order in Council P.C. 2026-209 of March 13, 2026 to the Governor in Council, this Order applies only to the goods that, according to that report, are being imported under such conditions as to cause or threaten serious injury to domestic producers of like or directly competitive goods.

Coming into force

4 This Order comes into force on the day on which it is registered.

SCHEDULE 1

(Subsection 1(1) and paragraph 2(1)(d))

Tariff Classification Number — Goods Subject to Surtax

SCHEDULE 2

(Paragraph 2(1)(b))

Developing Countries and Territories

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

Current data suggests there is a reasonable indication that certain canned vegetable goods are being imported into Canada in such incrementally higher quantities and under such conditions as to cause or threaten to cause serious injury to the Canadian canned vegetables industry. From 2023 to 2025, imports increased by 22%, with 62.8 million kilograms of canned vegetables imported into Canada in 2025. This increase appears to be the result of Canada’s obligations under World Trade Organization (WTO) agreements, including tariff concessions, combined with unforeseen developments in global trade. This includes some measures WTO members have taken, or are considering taking, to restrict imports of canned vegetables into their own markets. These actions have diverted, or threaten to divert, trade toward Canada, contributing to the increased volume of imports.

Background

Canada’s canned vegetable sector plays a vital role in the domestic food system by providing Canadian households with year-round access to affordable, nutritious vegetables. The sector is composed of vegetable growers and processors located across the country, including in rural communities.

Global safeguards are emergency measures that may be applied to fairly traded goods to provide domestic industries with time to adjust to unforeseen changes in global trade conditions. Under the WTO Agreement on Safeguards, a WTO member may impose global safeguard measures when goods are imported in such increased quantities and under such conditions as to cause, or threaten to cause, serious injury to domestic producers. On March 13, the Governor in Council, on the recommendation of the Minister of Finance (the Minister), referred the matter of the importation of certain vegetable goods into Canada to the Canadian International Trade Tribunal (CITT) for inquiry.

Pursuant to the WTO Agreement on Safeguards, in critical circumstances where delay could cause damage to the domestic industry that would be difficult to repair, WTO Members may introduce provisional safeguard measures for up to 200 days on the basis of a preliminary determination, pending the results of a safeguard investigation and the imposition of final safeguard measures, if warranted. In Canada, the requirements for imposing global safeguard measures are set out in the Customs Tariff. The Customs Tariff allows the Governor in Council to impose a surtax for a period of up to 200 days, on the basis of a report by the Minister, if goods are being imported under such conditions as to cause or threaten to cause serious injury to domestic producers of the subject goods. A report of the Minister may be made only if there are, in the opinion of the Minister, critical circumstances, or if the report relates to perishable agricultural goods.

In the case of canned vegetables, a report of the Minister to the Governor in Council (the Minister’s report) has preliminarily determined that canned vegetables are being imported in increased quantities and under such conditions as to cause or threaten to cause serious injury to the domestic producers. It has also been determined that, in the opinion of the Minister, critical circumstances exist, including the imminent risk of diversion of canned vegetable imports into Canada and losses of domestic contracts to foreign suppliers resulting from price undercutting by foreign suppliers. The Minister’s report determines that these factors warrant the imposition of a provisional safeguard measure, taking the form of a surtax of 10%.

The Governor in Council has accepted the Minister’s report and its preliminary determination that provisional safeguard measures on canned vegetable goods are warranted. While the provisional safeguard measure is in place, the CITT will continue to investigate whether safeguard measures are warranted, and if so, will recommend appropriate remedies to address the serious injury or threat of serious injury to domestic producers. The CITT is required to submit a report of its findings to the Governor in Council, through the Minister, by September 9, 2026.

Objective

The objective of the Certain Canned Vegetable Goods Surtax Order is for the Governor in Council to impose a 10% surtax on the importation of certain canned vegetable goods to address the serious injury to domestic producers caused by increased imports of those goods, while the CITT conducts its inquiry.

Description

The Government of Canada is imposing a provisional safeguard measure in the form of a 10% surtax on the importation of certain canned vegetable goods.

Pursuant to subsection 55 (1) of the Customs Tariff, the Certain Canned Vegetable Goods Surtax Order (the Order) imposes a provisional safeguard measure on imports of certain canned vegetable goods (as described in the Order), coming into force on the day on which the Order is registered. The Order imposes a 10% surtax for up to 200 days on imports from all countries, except imports from certain free trade partners (i.e. the United States, Mexico, Chile, Israel, and other Canada-Israel Free Trade Agreement beneficiaries) and developing countries. Once the CITT has presented its inquiry report, the Order will only apply to goods in respect of which the CITT has found that safeguard measures are warranted, if any.

When applied, the surtax will be calculated on the basis of the value for duty of the imported goods. It applies in addition to any other applicable duties owing, including customs duties, anti-dumping or countervailing duties, and taxes that may be applicable.

Consistent with Canada’s international obligations, special consideration was given to certain free trade agreement partners and developing countries. Canada’s free trade agreements require that certain trading partners be accorded preferential treatment when imposing safeguards. This includes a mandatory exclusion for the United States, Mexico, Chile, Israel and other Canada-Israel Free Trade Agreement beneficiaries, whereby imports from those partners are to be excluded unless they account for a substantial share of total imports, and contribute importantly to the injury or threat of serious injury.

Additionally, The WTO Agreement on Safeguards requires developing countries with an import share below 3 per cent to be excluded from safeguard measures, unless those developing countries with less than 3 per cent of import shares collectively account for more than 9 per cent of total imports. Under the Customs Tariff, Canada considers developing countries to be those benefiting from the General Preferential Tariff (GPT) and this list of GPT beneficiaries is used for the purposes of excluding developing countries from the application of the provisional safeguard measure. All developing countries included on the list of GPT beneficiaries met the criteria for exclusion under the WTO Agreement on Safeguards. As such, Schedule 2 of the Order excludes all GPT beneficiaries from the scope of the surtax.

Should the CITT find that final safeguards are warranted, the Governor in Council, based on a recommendation by the Minister, may impose final safeguard measures on canned vegetables. In this case, the provisional measures will remain in place for 200 days or until they are replaced by final safeguard measures.

Alternatively, should the CITT find that final safeguards are not warranted, the provisional safeguard measures will cease to apply as of the date of the CITT’s negative finding, pursuant to section 3 of Certain Canned Vegetable Goods Surtax Order. In such circumstances, the Governor in Council may, on the recommendation of the Minister, refund the provisional safeguard surtax paid through an Order in Council pursuant to section 58 of the Customs Tariff.

Regulatory development

Consultation

The Canadian Association of Vegetables Growers and Processors, a group of canned and frozen vegetable growers and processors, has raised concerns about recent trade disruptions and has requested urgent action to protect the industry.

The imposition of a temporary, provisional safeguard measure is concurrent with a safeguard inquiry conducted by the CITT that will determine whether longer-term safeguard measures are warranted. The CITT inquiry is conducted in an independent, transparent manner and allows for views from implicated stakeholders to be fully taken into consideration. Interested parties were invited to participate in the ongoing inquiry by providing written submissions and participating in a public hearing. Should the CITT make an affirmative determination that final safeguard measures are warranted, these views would be reflected in the CITT’s recommendation as to the appropriate remedy to impose.

In addition, as per Article 12 “Notification and Consultation” in the WTO Agreement on Safeguards, Canada notified the WTO Committee on Safeguards of the initiation of investigation on March 17, 2026, providing an opportunity for WTO Members to comment on the action at the Committee meeting held on April 27, 2026. Canada will likewise notify the WTO Committee on Safeguards upon the imposition of the provisional safeguard measure on canned vegetables.

Indigenous engagement, consultation and modern treaty obligations

Following an assessment of modern treaty implications, no adverse impacts on potential or established Indigenous or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982, were identified in the Order.

Instrument choice

Under subsection 55 of the Customs Tariff, the Governor in Council has the authority, on the recommendation of the Minister of Finance, to impose a surtax by order on specified goods imported into Canada. This authority allows the surtax to apply to goods from specified countries, or to goods imported into a defined region or part of Canada, for the duration set out in the Order.

Regulatory analysis

Baseline scenario

In the absence of the application of a provisional safeguard measure, the incentive to import low-priced canned vegetables under conditions that cause or threaten to cause serious injury to the domestic industry will remain. This activity is expected to magnify the critical circumstances the Canadian domestic industry is currently facing, including the risks of trade diversion in light of the imposition of border measures imposed by other countries and of continued domestic contract loss, as import increases continue unchecked.

Regulatory scenario

Canadian importers of certain canned vegetables will be charged a surtax of 10% of the value of duty of these importations for up to 200 days. This will increase the cost of importing certain canned vegetable goods while the CITT conducts an inquiry to determine if longer-term measures are warranted.

Benefits

The provisional safeguard measure is intended to support Canadian vegetable processors, primarily located in Quebec and Ontario, as well as vegetable growers across Quebec, Ontario, British Columbia, and Alberta. The provisional safeguard will provide short-term protection to the industry while the CITT inquiry is ongoing, and the imposition of final measures is considered.

For Canadian vegetable processors and growers, the provisional safeguard measure is expected to provide temporary support by preventing the critical circumstances the industry is facing from resulting in lasting damage that will be difficult to repair (e.g. permanent closures). This will be done through providing price stabilization and decreasing incentives for imports into the Canadian market.

Costs

There will be incremental costs for importers of subject canned vegetable goods, such as domestic grocers, which are likely to have a downstream effect on the price of certain canned vegetables for consumers. A tariff rate of 10% has been chosen to balance the need to protect the Canadian industry from the critical circumstances it is facing against the potential for the surtax to result in additional costs on importers being passed on to Canadian consumers. These costs increases will be limited in time as the provisional measures are imposed for only up to 200 days while the CITT inquiry continues and the imposition of final measures, if warranted, is considered. During its inquiry, the CITT was also directed to account for the impact on food security and affordability, when considering what remedies would be appropriate if final safeguard measures are found to be warranted. Cost increases may also be limited by the exclusion of imports from certain free trade partners from the measure. As a result, importers and consumers could substitute affected imports with canned vegetable imports from excluded countries that will be unaffected by the surtax.

In 2025, Canada imported around $109 million in canned vegetables from sources included in the provisional safeguard measure. Based on this, it is estimated that the 10% surtax would affect approximately $60 million in imports if it remains in place for the full 200 day-period. However, this estimate assumes no changes to 2025 import patterns and, therefore, overstates the revenue implications given the likely shifts in trade patterns, including the possibility for importers to source from domestic producers instead of foreign suppliers and/or substitution to other foreign markets.

Small business lens

The small business lens does not apply to this Order, as there are no changes to direct administrative or compliance requirements for small businesses.

One-for-one rule

The “one-for-one” rule does not apply to these amendments, as there is no change in administrative requirements to business.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that this Order would not result in positive or negative environmental effects; therefore, a strategic environmental assessment is not required.

Gender-based analysis plus

No impacts based on gender and other identity factors have been identified for this Order.

Implementation, compliance and enforcement, and service standards

The Canned Vegetable Goods Surtax Order will come into force on the day on which the Order is registered.

The Order will be implemented by the Canada Border Services Agency (CBSA), as the administrator of the Customs Tariff. The CBSA will release a Customs Notice to inform the importing community of information related to the administration of the tariffs.

Contact

Marie-Hélène Cantin
Director
Trade Rules
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Email: tariff-tarif@fin.gc.ca