Canada ends anti-dumping and countervailing duties on Chinese solar products after 11 years

Source: Visual China Reporter: Xi Jinghua, Jiemian News

Canada has terminated its anti-dumping and countervailing duties (AD/CVD) on Chinese photovoltaic (PV) products, reopening its market to Chinese solar manufacturers.

On September 17, the Canadian International Trade Tribunal (CITT) issued a notice terminating the second sunset review of anti-dumping and countervailing measures on photovoltaic modules and laminates originating in China. The CITT revoked the order issued on March 25, 2021. The Canada Border Services Agency (CBSA) subsequently ceased collecting the duties.

This marks the end of over 11 years of AD/CVD measures against Chinese solar products, which began in 2014.

Procedural Termination, Not Substantive Finding

However, this outcome was not the result of the CITT concluding, after a full injury investigation, that China was no longer dumping. Instead, it was a "procedural termination" due to the lack of substantive participation by Canadian domestic producers in the review.

On July 2, the CBSA issued an affirmative determination, finding that the dumping and subsidization of Chinese solar products would "likely" continue if the order expired. However, the only domestic producer that responded to the review questionnaire, Heliene, had already ceased production in Canada. No importers, Chinese exporters, or the Chinese government participated in the review. Against this backdrop, the CITT ultimately terminated the review process.

Context of Bilateral Trade Consultations

"This is a concession in the economic and trade consultations between China and Canada," a solar industry expert told Jiemian News.

In January of this year, the Canadian Prime Minister visited China for the first time in eight years. The two sides signed the China-Canada Economic and Trade Cooperation Roadmap. Canada also cancelled the 100% punitive tariff on Chinese electric vehicles, replacing it with an annual quota management system. Furthermore, it did not proceed with the proposed tariffs on Chinese solar and semiconductor products outlined in the Fall 2024 Economic Statement.

Limited Market Impact

The same source noted that the Canadian solar market is relatively small, with annual new installations of only a few hundred megawatts, mostly off-grid.

"Canada's revocation of the AD/CVD is positive, but it is not a key market at present, and the overall impact is limited," several solar companies also told Jiemian News.

"China's annual PV module export value to Canada is less than its monthly exports to the Netherlands," a solar analyst who requested anonymity told Jiemian News. "In the short term, module manufacturers will not re-prioritize Canada as a key market. The Middle East, South Africa, Brazil, and Europe remain the current focus areas for module companies."

According to data from the China Photovoltaic Industry Association (CPIA):

• In 2025, China's PV module export value to Canada was approximately $10.96 million, with an export volume of about 119 MW.
• From January to August 2025, the export value to Canada was approximately $7.33 million, with an export volume of 52 MW.

According to the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCIME), China's total PV module export volume in 2025 was 249.8 GW. Based on this, China's exports to Canada account for less than 0.05% of the total. The Netherlands is China's largest PV module export destination, accounting for about 8%.

Ding Wenlei, Executive Director of Shandong Hangyu Energy Co., Ltd., also told Jiemian News that Africa, Southeast Asia, and Australia are confirmed growth markets for solar. For example, in August, Indonesian President Prabowo Subianto officially launched a 100 GW solar power plan, targeting completion within three years, with an investment of approximately $73 billion.

JA Solar Technology (002459.SZ) told Jiemian News that the Middle East, Latin America, and South Africa are its near-term focus areas.

Strategic Choices for Chinese Companies

With the cancellation of Canadian AD/CVD, Chinese companies face a choice: export directly from China or continue using their overseas production bases.

Re-entering the Canadian market requires re-certification, renegotiating commercial contracts, and re-establishing local distribution channels. In contrast, zero-tariff channels through Southeast Asia have been operating for years with strong customer loyalty. Chinese companies face challenges in supply chain reconstruction, channel competition, and localized deployment.

"In the short term, a shift in procurement channels is more likely than a sudden surge in end-market demand," an SMM analysis report noted. For companies with both Chinese and overseas production bases, some orders may be reallocated between different bases. If Chinese factories are more competitive in terms of product efficiency, manufacturing costs, and delivery conditions, orders for Canada previously fulfilled by overseas bases may be re-evaluated.

SMM further pointed out that Canadian project demand remains influenced by factors such as financing, permits, grid connection, and procurement approvals. After the revocation of AD/CVD, Chinese PV module prices will be more competitive, potentially increasing the chances of Chinese products being included in procurement lists. In the medium term, the scale of new demand in Canada will depend on project awards, financing completion, grid connection arrangements, and actual construction progress.

History of the Trade Measures

Canada's AD/CVD measures against Chinese solar products began in December 2014.

• In July 2015, the CITT issued a final affirmative determination on anti-dumping and countervailing duties for crystalline silicon PV modules from China, imposing a 154.4% anti-dumping duty and a corresponding countervailing duty.
• In October 2020, the CITT ruled to maintain the AD/CVD measures for another five years with unchanged tariff rates, significantly hindering Chinese PV module exports and raising import costs for the Chinese solar supply chain.

These measures kept China's market share in Canada persistently low. According to data from the international trade data platform GTAIC, in 2025, Canada's top two sources of PV module imports were Vietnam (32.8%) and Malaysia (30.5%), while mainland China accounted for 10.7%.

An investor relations representative from a vertically integrated solar company told Jiemian News that the company exports to Canada, but more shipments come from its overseas bases. "During the AD/CVD period, the direct export tariff rate was over 150%, far higher than normal tariff levels."

Weak Domestic Manufacturing Capacity

Another factor behind the termination of the AD/CVD is Canada's weak domestic solar manufacturing capacity. Domestic module manufacturing in Canada has nearly stalled, with over 85% of modules relying on imports.

Apart from Heliene, which ceased production at the end of 2022, another domestic producer, Silfab, has also idled its PV module production capacity in Canada since the second half of 2025. In an interim review ruling in March 2026, the CITT disclosed that neither Heliene nor Silfab is currently producing PV modules, citing low market prices and weak demand in Canada.

According to the International Energy Agency's (IEA) Energy Technology Perspectives 2026 report, China accounts for approximately 85% of the global PV supply chain capacity, including 95% of the polysilicon wafer segment. This vertical integration advantage is difficult to replace in the short term. Globally, trade barriers against Chinese solar products are intensifying in the United States and India, while the European Union is constructing implicit barriers under the guise of green compliance.

Positive Signal for Bilateral Trade

"Canada's latest decision reflects a more pragmatic response to actual market demand," Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, told the Global Times on September 21.

Zhou noted that removing the additional tariffs will allow Canadian companies and other downstream users to import PV modules and related products from China at lower costs, thereby helping to reduce the development costs of solar power projects.

"Maintaining additional tariffs may not necessarily strengthen domestic industrial capacity, especially when domestic supply cannot meet market demand," Zhou said. "This is also a positive signal for improving China-Canada economic and trade relations."