On April 21, 2026, the Trade Remedies Authority of Vietnam (TRAV) – under the Ministry of Industry and Trade – received information from the Vietnam Trade Office in Canada that Canada’s Minister of Finance and National Revenue, François-Philippe Champagne, has requested the Canadian International Trade Tribunal (CITT) to consider initiating a safeguard investigation on certain imported wood products. This is viewed as an early signal that Canada may launch a new trade remedy case in the wood products sector.

1. General information on the case

According to statements from the Canadian side, the potential scope of products under investigation includes key categories such as: wooden kitchen cabinets and bathroom vanities made from solid wood and engineered wood; solid and engineered wood flooring; as well as storage cabinets made from engineered wood.

If the investigation is officially initiated, the Canadian International Trade Tribunal (CITT) will have up to 270 days to assess whether the increase in imports of these products has caused or threatens to cause serious injury to the domestic industry. Based on its findings, the CITT will recommend whether safeguard measures should be applied, as well as their form and level.

This development stems from a request by the Canadian Wood Products Alliance, amid concerns over trade diversion as major markets intensify the use of protective measures. The Canadian government has also emphasized the importance of the forestry sector to the national economy, employing approximately 200,000 workers and contributing more than CAD 20 billion to GDP, highlighting its determination to protect domestic producers from import competition.

2. Recommendations for enterprises

Given the risk of a potential investigation, relevant manufacturing and exporting enterprises should closely monitor policy developments in Canada and thoroughly study the country’s safeguard investigation regulations and procedures.

It is essential to review export activities to Canada, including product structure, pricing, market share, and the level of dependence on this market, in order to assess risk exposure and develop appropriate response strategies. At the same time, enterprises should prepare the necessary data and documentation in advance in case the investigation is formally initiated.

Maintaining close coordination with domestic authorities is also critical to ensure timely access to information and to receive technical and legal support throughout the process.

3. Implications for Vietnam and potential impacts

Vietnam is currently one of the key exporters of wood products, particularly furniture and processed wood products, to the Canadian market. Therefore, if a safeguard investigation is initiated, product groups such as wooden cabinets, flooring, and storage units are likely to be directly affected.

In the context of Canada’s concerns over trade diversion, exports from major manufacturing countries, including Vietnam, may come under heightened scrutiny. If safeguard measures are imposed, Vietnamese enterprises may face increased export costs or restricted market access.

Conversely, if the investigation does not result in the imposition of measures, this could provide an opportunity for enterprises to strengthen their position in the Canadian market. However, the growing global trend of using trade remedy instruments indicates that businesses must enhance compliance capacity, improve supply chain transparency, and proactively participate in investigation processes to safeguard their long-term interests.

To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnam Antidumping Law Firm specializing in anti-dumping and trade remedy for timely assistance.

Source: ASL