Investigation that failed due to negligence is back: the battle over Canadian cannabis heats up again
The Ministry of Economy has reopened an anti-dumping investigation into medical cannabis imports from Canada after a previous attempt was closed due to a procedural error. The move has sparked sharp protests from chambers of commerce and patient advocacy groups.
Following a negligent error by the Ministry of Economy, which failed to notify the Canadian government about the opening of an investigation into suspected dumping of medical cannabis, the ministry was forced to close the probe at the end of July—just a month after it began. A new round of conflict is now underway, as the Commissioner for Trade Levies, Dani Tal, has announced the reopening of the anti-dumping investigation.
This comes just a year after a previous attempt to impose a similar levy, which caused a two-year market storm, was blocked. The Federation of Israeli Chambers of Commerce has submitted an urgent request to the Ministry of Justice to intervene, citing "extreme unreasonableness" and demanding that the proceedings be frozen until the Commissioner's authority is clarified.
To correct the previous error and comply with WTO agreements, Tal sent a notification letter to the Canadian government in early August. This time, the notice was provided before the official announcement. Tal stated that data indicates cannabis imports from Canada are occurring at dumping prices, with an alleged dumping margin of approximately 125%.
The complaint was filed by Israeli medical cannabis growers Evergreen Solomon Pharma and Trichome, who claim that Canadian imports are causing real damage to local production. Tal has ordered all industry players to submit their positions by September 7.
It is worth noting that in April 2025, Minister of Economy Nir Barkat supported a dumping levy of up to 165%, but Minister of Finance Bezalel Smotrich exercised his veto power to block it. Tal now justifies the reopening of the investigation by citing "material changes in circumstances," including the collapse of local farms and a surge in import volumes.
The Federation of Israeli Chambers of Commerce is preparing for a legal battle. CEO Gilit Rubinstein sent a sharp letter to the Ministry of Justice, characterizing Tal's actions as a "de-facto appellate instance" against the Minister's previous decision. Simultaneously, the Israel Cancer Association has appealed to Minister of Health Haim Katz, warning that the investigation threatens the availability and affordability of medical cannabis for patients.
The Ministry of Economy responded: "Dumping is an unfair trade practice prohibited by law. We are conducting a professional economic investigation to protect local industry from predatory imports that threaten competition and the well-being of hundreds of thousands of patients who rely on this medicine."
