Data from Statistics Canada demonstrate that imports of frozen vegetables – including frozen peas – climbed last year.Fred Lum/The Globe and Mail
Ottawa has launched a rare trade inquiry to address the impact of a surge of imported frozen peas, canned corn and other preserved vegetables, which domestic producers say is undercutting their business.
On March 13, Minister of Finance François-Philippe Champagne directed the Canadian International Trade Tribunal to conduct a safeguarding inquiry into imports of certain frozen and canned vegetables.
“The increase appears to be the result of unforeseen developments in global trade,” Department of Finance spokesperson Caroline Feggans said in a statement on Wednesday. “This includes some measures WTO Members have taken to restrict imports of frozen and canned vegetables into their own markets, which may have contributed to increased import volumes in Canada.”
U.S. President Donald Trump’s tariffs, for example, have pushed foreign companies to look for new markets, driving concerns products are being diverted and flooding the Canadian market.
Public hearings will begin June 15, and the report will be published in September. If successful, the inquiry could result in tariffs or other measures being applied to certain vegetable imports.
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Safeguard measures differ from anti-dumping and countervailing duties, as they apply to all countries (unless there are carve-outs), rather than specific countries. Safeguard actions are rare and are meant to be relatively short-lived, to address emergency scenarios.
The investigation was launched at the request of the Canadian Association of Vegetable Growers and Processors. The organization was formed in January.
The association has not said which businesses they represent. It is the “voice of Canadian vegetable growers, harvesters, employees, and processors from coast to coast to coast,” said a statement from spokesperson Alik Angaladian with the public relations firm Maple Leaf Strategies.
Some large Canadian vegetable processors have highlighted competition from foreign imports in recent months and have been lobbying the federal government on the issue.
Quebec vegetable processing giant Nortera Foods has cited concerns about import competition when closing two plants over the past six months. The company is backed by the Caisse de dépôt et placement du Québec and Fonds de solidarité FTQ.
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Nortera declined to comment on whether it was involved in the government’s safeguarding inquiry, but said in a statement the company is broadly aligned with the concerns expressed by the association, “including the impact of increased volumes of low-priced imports on domestic production.”
The company owns brands Del Monte, Arctic Gardens and in October purchased Green Giant and Le Sieur from Parsippany, N.J.-based B&G Foods.
Nortera is in the process of closing plants. On Monday, it said it is shutting down its facility in Lethbridge, Alta. Last year, it said it planned to shutter one in Saint-Césaire, Que., and that some workers would find employment at its Saint-Denis-sur-Richelieu operations, where it planned a $28-million expansion.
Nortera’s press release on Monday cited a “market increasingly challenged by international imports.”
As part of a safeguarding inquiry, the CITT will need to prove that there was a surge in imports, which was unforeseeable, said Rambod Behboodi, a trade lawyer for Borden Ladner Gervais LLP who is not involved in the case. It will also need to show that the injury to domestic producers is tied to these imports and not broader economic trends.
Data from Statistics Canada demonstrate that imports of frozen vegetables to be examined by the inquiry – including frozen peas, sweet corn and canned beans – climbed last year.
In particular, imports from China increased starting in January, 2025, climbing more than 40 per cent from the month before. While shipments decreased across the year, they did not return to 2024 levels. In 2025, Chinese exporters sold $66-million of selected frozen and canned vegetables in Canada, 25 per cent more than 2024.
Mr. Trump’s 2025 trade disputes with the Asian country resulted in a range of tariff rates on incoming products.
The Department of Finance also said it is considering a separate safeguarding inquiry into wood cabinets, vanities and other items.
More safeguarding inquiries should come as no surprise, Mr. Behboodi said.
“Trade diversion is a natural consequence of trade barriers. As soon as a market is closed, whatever is left outside the door has to find some other outlets.”