Canada has opened trade investigations into disposable paperboard cups and food containers imported from China, examining whether the products are being dumped into the Canadian market and/or benefiting from subsidies.

The Canada Border Services Agency (CBSA) initiated the investigations on August 17, 2026, following a complaint from Canadian packaging manufacturer Great Pacific Enterprises.

The case covers paperboard cups and containers used to serve hot and cold beverages and food, putting a significant segment of Canada’s foodservice packaging market under trade-remedy scrutiny.

What Is Canada Investigating?

The CBSA is examining two separate but related questions.

Dumping occurs when imported products are sold in Canada at prices considered unfairly low under Canada’s trade-remedy rules.

Subsidizing concerns financial or other forms of government support that may give foreign producers an unfair advantage when exporting products to Canada.

Both practices are addressed under Canada’s Special Import Measures Act (SIMA).

The investigations focus on goods originating in or exported from China.

Importantly, the opening of an investigation does not establish that dumping or subsidization has occurred. Those determinations will depend on evidence collected during the proceedings.

Canadian Manufacturer Alleges Material Injury

The investigations follow a complaint submitted by Great Pacific Enterprises, which sells foodservice packaging in Canada under the Genpak brand.

According to information contained in the complaint, Great Pacific Enterprises represents the majority of Canadian production of the paperboard cups and containers covered by the case.

The company alleges that increasing volumes of dumped and subsidized imports have caused material injury to its Canadian operations.

The alleged effects include:

• price undercutting, depression and suppression
• lost sales and market share
• declining margins
• lower capacity utilization
• reduced employment
• negative effects on investment

These remain allegations at this stage and have not yet been established through the Canadian trade-remedy process.

The Canadian market for the products concerned is estimated at approximately C$289 million annually.

CBSA and CITT Have Different Roles

Two Canadian authorities will examine different parts of the case.

The CBSA will investigate whether the imported products have been dumped and/or subsidized.

Meanwhile, the Canadian International Trade Tribunal (CITT) will conduct a preliminary inquiry into whether the imports have caused or threaten to cause injury to Canadian producers.

The CITT is expected to issue its preliminary injury decision by October 16, 2026.

The CBSA is scheduled to make its preliminary dumping and subsidy determinations by November 16, 2026.

These dates make the next three months particularly important for Chinese manufacturers and exporters supplying paperboard foodservice packaging to Canada.

What Could Happen Next?

The initiation of the investigations does not mean additional duties have already been imposed as a final outcome.

If the investigations establish the conditions required under SIMA, however, the affected imports could ultimately become subject to trade-remedy duties designed to offset dumping and/or subsidization.

The proceedings could therefore have commercial implications beyond the companies directly involved.

Importers may need to examine their sourcing exposure, while Chinese manufacturers supplying Canadian customers may face additional documentation requirements and potential changes to landed costs depending on the outcome.

Canadian producers, meanwhile, will be watching whether the proceedings alter competitive conditions in the domestic foodservice packaging market.

Paper Packaging Enters Canada’s Trade-Remedy Spotlight

The case is notable because paperboard foodservice packaging sits at the intersection of several changing markets.

Restaurants, takeaway businesses, institutional foodservice operators and retailers consume large volumes of disposable cups and food containers, while packaging companies are simultaneously responding to changing plastics regulations and demand for fiber-based alternatives.

Trade measures affecting paperboard formats could therefore influence sourcing decisions within a market already undergoing material and regulatory changes.

Canada has been actively using its trade-remedy framework across multiple industries.

According to the CBSA, SIMA duties applied to approximately C$3.3 billion of imports in 2025, covering industries employing 43,728 people. There are currently 185 special import measures in force.

The agency launched 33 combined dumping and subsidy investigations covering nine products during 2025. So far in 2026, it has launched 14 investigations covering seven products.

For the paperboard packaging industry, attention now turns to the October CITT decision and the CBSA’s preliminary determinations in November.

Until those findings are issued, the central allegations remain just that: allegations under investigation.

Last Updated on 26/08/2026 by Jota Machinery