On Aug. 17, the Canada Border Services Agency (CBSA) initiated investigations to determine whether paperboard cups and containers are being sold at unfair prices in Canada (i.e. dumped) and/or subsidized. The investigations focus on imports from producers operating in or exporting from China. These practices can harm Canadian industries by undercutting prices, which undermines fair competition.
CBSA’s investigations follow a complaint filed by Canadian packaging manufacturer Great Pacific Enterprises. The complainant alleges that as a result of an increase in the volume of dumped and subsidized imports, it has suffered material injury in the form of price undercutting, price depression, price suppression, lost sales, lost market share, decline in margins, reduction in capacity utilization, reduced employment and negative impact on investments.
The products in question are disposable paperboard cups and containers used to hold and serve hot or cold drinks and food. The complainant is known for its Genpak brand of such products in Canada. Further, based on the information included in the complaint, the complainant represents the majority of Canadian production of paperboard cups and containers. (The Canadian market size for paperboard cups and containers is estimated at $289 million annually.)
CBSA and the Canadian International Trade Tribunal (CITT) are both playing a role in the investigation. CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by Oct. 16. Concurrently, CBSA will investigate whether the imports are being sold in Canada at unfair prices and/or subsidized and will make preliminary decisions by Nov. 16.
The Special Import Measures Act (SIMA) protects Canadian producers and jobs from unfair trade, so as to safeguard Canada’s economy. In 2025, SIMA duties applied to approximately $3.3 billion worth of imports in industries employing 43,728 people in Canada. Currently, there are 185 special import measures in force in Canada.
Canada’s trade remedy system is designed to ensure imported goods are priced fairly relative to domestic products. To counteract unfair trade practices, CBSA has the authority under SIMA to initiate investigations if a complaint is properly documented and impose trade remedy measures when there is evidence that dumping or subsidizing is causing or threatens to cause injury to Canadian producers.
In 2025, CBSA launched a combined 33 dumping and subsidy investigations for nine different products. So far in 2026, CBSA has launched a combined 14 dumping and subsidy investigations for seven different products.
