Canada Launches Safeguard Inquiry Into Certain Wood Product Imports

Ottawa has launched a potentially significant trade proceeding that could affect the cost and availability of certain wood products in Canada. On April 20, 2026, François-Philippe Champagne, Minister of Finance and National Revenue, announced that the Government of Canada has directed the Canadian International Trade Tribunal (CITT) to conduct a safeguard inquiry into global imports of certain wood products (Inquiry No. GC-2026-001 re Certain Wood Goods).

Below, we provide an overview of the inquiry, its potential implications, and the key issues that importers, exporters, and manufacturers should be watching.

Announcement of the safeguard inquiry

The inquiry was initiated in response to a formal request from the Canadian Wood Products Alliance. The minister's announcement frames the inquiry as part of the government's broader efforts to ensure that Canadian industries are not jeopardized by harmful trade diversion resulting from the rapidly changing global trade environment.

The Order-in-Council directing this inquiry notes that wood goods are being imported in increased quantities. The government believes the increase to be a result of tariff concessions, incurred by Canada under the World Trade Organization (WTO) Agreement and of unforeseen developments in global trade, including:

• structural excess capacity in wood product manufacturing in some WTO members;
• conflict-related disruptions in forest product trade; and
• some WTO members restricting or considering restricting the importation of wood goods into their markets.

Products covered

The inquiry covers global imports of the following classes of goods:

• Solid and engineered wood cabinets and vanities
• Solid and engineered hardwood flooring
• Engineered wood storage furniture.

The period covered by the inquiry begins on January 1, 2023.

Scope of the safeguard inquiry

The safeguard inquiry will determine whether the goods within each class of goods are being imported in increased quantities such that they are a principal cause of serious injury or threat of injury to domestic producers of like or directly competitive goods.

Unlike anti-dumping or countervailing duty investigations, safeguard inquiries do not require imports to have been dumped or subsidized. Rather, they concern increased volumes of fairly traded imports from all sources and the impact of those increases on domestic producers.

Under the WTO Agreement on Safeguards, safeguard measures are intended to be temporary and to give domestic industries time to adjust to the increased competition. These measures may be applied for an initial period of up to four years. Over period of application, the measures are to be progressively liberalized. This period may be extended up to eight years, if determined that the measures are needed to remedy the serious injury or threat of injury and that domestic producers are adjusting to the import competition.

Timeline

The CITT has been given 270 days to complete its inquiry and report its findings and recommendations to the Minister of Finance. Below are some of the key milestones of the inquiry review schedule:

• April 27, 2026: Deadline for submissions to the CITT on the unit of measure for each class of goods
• May 15, 2026: The CITT will post bilingual questionnaires for domestic producers, importers, foreign producers of each class of goods, and unions
• June 5, 2026: Deadline to file replies to the questionnaires
• After August 4, 2026: Interested parties may make submissions to the CITT once the questionnaire replies and summary report are placed on the record
• Early October 2026: Hybrid public hearings will take place.

Each party wishing to make submissions to the CITT must file a Notice of Participation by May 15, 2026.

Potential remedies

If the CITT determines that the imports of the above listed wood products are a principal cause of serious threat or injury to domestic producers, it must recommend to the Government of Canada the most appropriate remedy for each class of goods, over a period of three years. Available potential remedies include the following:

• Import surtax: An exceptional additional rate of duty applicable to the value of the subject goods on import, in addition to any customs duty otherwise applicable.
• Import quota: An absolute limit on the volume of the subject goods that can be imported during a specified time period.
• Tariff-rate quota: A combination of an import quota and a surtax, under which an additional surtax becomes applicable to subject goods imported during a specified time period after the import quota for that period has been exceeded.

Recommendations made by the CITT are advisory only; the federal government ultimately decides whether to impose safeguard measures and in what form.

The Minister of Finance and National Revenue has stated that if the CITT finds that safeguard measures are warranted, the government will take appropriate action in accordance with international trade rules.

Implications for businesses

The practical effect of any safeguard measures, if imposed, could be substantial. Importers of the subject wood products could face significant additional costs on import, or their ability to import goods into Canada may be restricted through quotas. This could have a material impact on supply chains, pricing, and business planning for any company that imports or distributes these products in Canada.

It is critical that foreign manufacturers and exporters, Canadian importers, and end-users of the affected wood products review their current supply chains to determine the potential impact of proposed safeguard measures. Stakeholders across the supply chain should closely monitor developments and assess potential exposure to safeguard measures that could affect pricing, sourcing, contractual arrangements, and supply continuity in the coming months.

Participation in the inquiry

Importers and other interested parties have a right to participate in the inquiry process and to make submissions to the CITT. Participation can include filing written case briefs and evidence, responding to CITT questionnaires, and presenting testimony and argument at a public hearing. Importantly, only external legal counsel who have filed the requisite confidentiality undertakings are able to access the confidential information on the record, which is often needed to build an effective case.

Given the potential commercial impact of any resulting measures, interested parties, including Canadian importers and distributors of wood products, foreign exporters and producers supplying the Canadian market, and downstream purchasers, should engage early to ensure that their interests and market realities are reflected in the CITT's record.

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