Mushrooms Canada Rejects US Subsidy Findings Against Canadian Growers

Ottawa; May 2026: Mushrooms Canada, which is the national trade association representing Canadian mushroom growers, processors, and industry partners globally for the last 60 years, has expressed disappointment with the US Department of Commerce’s preliminary countervailing duty determination in the trade case concerning fresh mushrooms from Canada.

In a decision released on May 13th (local time), the United States Department of Commerce announced preliminary countervailing duties on fresh Canadian white button and portobello mushrooms. The decision follows allegations that Canadian growers benefit from unfair subsidies linked to agricultural tax exemptions. The complaint was filed last year by the Fresh Mushrooms Fair Trade Coalition.

As a result of Commerce’s preliminary determination, US importers of Canadian fresh mushrooms will be required to post countervailing duty cash deposits beginning on the date the determination is published in the Federal Register (likely to release on Monday May 18th). The preliminary rate is not final, and the case remains subject to further review by both Commerce and the US International Trade Commission.

“US Commerce’s preliminary conclusion is deeply flawed”, said Ryan Koeslag, Executive Vice-President & CEO of Mushrooms Canada. “The overwhelming basis for the preliminary CVD rate appears to be mainstream agricultural tax treatment, including provincial sales tax exemptions available to farmers generally. Treating broad-based agricultural tax measures as unfair subsidies is contrary to common sense and unfairly penalizes Canadian mushroom growers for participating in programs available across the agricultural sector in any number of countries”.

Mushrooms Canada has emphasised that the preliminary determination does not mean that Canadian growers have engaged in unfair trade. Under US trade law, a subsidy must meet specific legal requirements before it can be countervailed, including that the alleged benefit be limited to a specific enterprise, industry, or group. Mushrooms Canada believes those requirements have not been met here.

“It is difficult to reconcile Commerce’s preliminary approach with the fact that comparable agricultural tax treatment exists in the United States”, Ryan Koeslag added. “Canadian mushroom growers are not receiving special treatment. They are operating under ordinary rules that apply to farmers”. The trade case is far from over. Commerce must still issue final antidumping and countervailing duty determinations, and the US International Trade Commission (USITC) must make a final injury determination. If the USITC finds that imports of fresh mushrooms from Canada are not causing material injury or threat of material injury to the US industry, any AD/CVD duties will be terminated.

“Mushrooms Canada will continue to participate fully in the process and demonstrate that the allegations against our sector are unfounded”, Mr. Koeslag said. “Canadian growers provide high-quality, responsibly produced mushrooms that support consumers, retailers, foodservice operators, and the broader North American market”. Mushrooms Canada also noted the deep integration of the Canadian and US mushroom industries.

“The mushroom sector in North America has grown through collaboration, cross-border supply relationships, and shared commitment to quality and food security”, Ryan Koeslag said. “This case should not obscure the fact that Canadian and US producers, workers, customers, and consumers all benefit when our markets remain connected and reliable”.

If the USITC concludes that no material injury exists, the duties would be removed.

According to Statistics Canada, the country’s mushroom industry generated approximately US$543 million (C$750 million) in sales during 2024. Canada is the world’s eighth-largest mushroom producer, with more than 50% of production located in Ontario. Nearly 48% of Canadian mushroom production is exported, primarily to the United States.

Team Maverick.