Ministry of Economy Closes Anti-Dumping Investigation into Canadian Cannabis Due to "Human Error"

The Ministry of Economy has closed its anti-dumping investigation into the import of medical cannabis from Canada due to a "human error."

Clumsy conduct by the Ministry of Economy led to the cancellation of the investigation within just one month, causing embarrassment before Canadian authorities, as the ministry failed to notify them of the investigation's commencement as required by trade agreements and World Trade Organization (WTO) anti-dumping rules.

Yesterday, the Commissioner for Trade Levies at the Ministry of Economy, Dani Tal, informed growers, importers, and industry stakeholders that he had decided to close the investigation, which he had announced only at the end of June. The official notice stated that the closure was made "for procedural reasons only, in light of a human error, due to which a notice of the opening of an investigation was not submitted in advance to the competent authority in the exporting country."

The Commissioner's notice arrived just one day before the deadline set for industry participants to submit responses and complete mandatory questionnaires (the deadline was July 29, at 16:00).

However, this may not be the end of the matter. The update email clarified that the decision "is not based on any substantive determination regarding the merits of the complaint" and emphasized that it does not prejudice any rights or claims, including the possibility of filing a new complaint or opening a fresh investigation.

This was a repeat investigation, controversial due to the cancellation about a year ago of a similar anti-dumping levy following a public dispute between Minister of Economy Nir Barkat and Minister of Finance Bezalel Smotrich, who exercised his veto power. In April 2025, despite Barkat adopting advisory committee recommendations to impose a levy, the opposition from the Ministry of Health, the Competition Authority, and Treasury officials ultimately prevented its implementation.

Nevertheless, on June 29, Tal announced a new investigation based on a complaint from Israeli companies Evergreen Solomon Pharma and Trichome. Tal claimed that imports were occurring at dumping prices, with an alleged dumping rate of approximately 125%—comparing the export price to Israel (approx. 4.43 NIS per gram) to the local Canadian market price (approx. 10 NIS per gram).

The Federation of Israeli Chambers of Commerce, led by CEO Gilit Rubinstein, strongly opposed the investigation, threatening legal action. Tal defended his decision by citing a "material change in circumstances," including the collapse of local growers and a sharp increase in import volumes, which he argued caused real economic damage to the local sector.

The Ministry of Economy responded to Calcalist: "During the procedure, it turned out that a procedural flaw had occurred. After a professional and legal review, it was decided to stop the current procedure without dragging the parties into unnecessary litigation. If a new procedure is filed in the future, it will be examined and managed in accordance with the provisions of the law."