Question Period Note: U.S. TRADE ACTION AGAINST MUSHROOMS FROM CANADA

Q1 – What has been the Government’s response to U.S.’ anti-dumping and countervailing investigations of mushrooms from Canada?
Q2 - What are the key allegations against Canada?
Q3 - What does the affirmative preliminary countervailing duty determination mean for Canada and what are the next steps?
Q4 – What is the status of the anti-dumping investigation?

R1 - The government of Canada will continue to actively participate in these investigations and work with other federal government departments, provincial and territorial governments, as well as the mushroom industry, to defend Canadian programs and the Canadian mushroom industry against these allegations.
R2 - The three allegations by U.S. petitioners relate to imports of fresh mushrooms from Canada and their effect on the U.S. industry:
1. Firstly, that imports of fresh mushrooms from Canada are being sold at dumped prices in the U.S. market.
2. Secondly, that imports of fresh Agaricus mushrooms from Canada are unfairly subsidized by Canadian governments (both federal and provincial).
3. Thirdly, that dumping and unfair subsidization are causing and/or threatening to cause material injury to the U.S. domestic industry.
R3 - Following the affirmative preliminary determination in the countervailing duty investigation, the U.S. Department of Commerce imposed provisional duties on imports of fresh mushrooms from Canada ranging from 1.62% to 4.97%. U.S. customs began collecting duties from U.S. importers as of May 18.
The preliminary rates are not final, and the case remains subject to further review by the Department of Commerce and the U.S. International Trade Commission. If deemed appropriate, Canada and/or the provinces will have an opportunity to provide rebuttal arguments and participate in a potential hearing this summer.
Final determination on countervail is expected to be issued by U.S. Department of Commerce in November 2026.
R4 - The anti-dumping investigation is ongoing, with a preliminary determination expected by July 13, 2026, and the final determination is expected in November 2026.

On September 16, 2025, the Fresh Mushrooms Fair Trade Coalition in the United States (U.S.) filed a petition with the U.S. International Trade Commission (ITC) and the U.S. Department of Commerce (Commerce), to initiate both anti-dumping (AD) and countervailing duty (CVD) investigations actions against imports of fresh Canadian mushrooms.
With respect to the CVD investigation, the petition alleges that Canadian exports have benefited from a variety of government subsidies at both the federal and provincial level. With respect to the AD investigation, the petition alleges that fresh mushrooms from Canada have been dumped into the U.S. market.
This investigation is specific to fresh Agaricus mushrooms (HS 0709.51.0100), which includes button mushrooms, chestnut mushrooms, cremini mushrooms, baby bellas, portabella mushrooms, and table mushrooms.
On January 6, 2026, the U.S. Department of Commerce announced that it had initiated both AD and CVD investigations. On January 15, the USITC issued affirmative preliminary determinations of injury, effectively enabling Commerce to continue its AD and CVD investigations. On May 12, the Department of Commerce issued an affirmative preliminary CVD determination, with provisional duties ranging from 1.62% to 4.97%, which U.S. Customs began collecting from U.S. importers as of May 18. A preliminary AD determination is expected by July 13. Should there be subsequent preliminary determinations of dumping, provisional duties may be imposed on imports from Canada. Final CVD and AD determinations are expected to be issued by the Department of Commerce in November. Any final measures proposed by the Department of Commerce cannot be put in place unless there is an affirmative final determination of injury by the USITC, which is expected in January 2027. Should a negative injury determination be made, the investigation would be terminated, and any duties collected would be returned to the importer of record.
Canadian mushroom growers produced 148,569 metric tons of mushrooms at a value of $749.5 million in 2024. Ontario and British Columbia together account for 93% of national mushroom sales (ON 63%, BC 30%). Manitoba, Alberta and Quebec also grow mushrooms.
In 2024, Canada exported $512 million in fresh mushrooms, ranking second worldwide in value and third in volume. The U.S. is the top export determination for fresh mushrooms from Canada, accounting for more than 98% of export values. Although Ontario produces the largest volume of mushrooms, British Columbia accounted for 65% of the value of all exports. Canada accounted for 89% of the volume of U.S. imports of mushrooms of the genus Agaricus, worth $483 million.
Canadian fresh mushroom exports were valued at $7.18/kg in 2024 – the highest among the top five exporters worldwide of fresh mushrooms in terms of value – and well above the global average of $4.17/kg.

• We are disappointed that the U.S. Department of Commerce has imposed provisional countervailing duties on imports of fresh mushrooms from Canada.
• The Canadian mushroom industry produces high-quality products and remains a reliable and long-standing partner to its U.S. customers.
• As part of a deeply integrated supply chain, mushroom production inputs and final product flow back and forth across the border to the benefit of farmers, processors, traders, and consumers in both the U.S. and Canada.
• Canada will continue to actively participate in these investigations and defend the interests of the Canadian mushroom industry.