Evidence of meeting #29 for International Trade in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was injury.
A recording is available from Parliament.
Chair, Office of the Chairman, Canadian International Trade Tribunal
I believe we're sufficiently well resourced, sir.
Conservative
The Chair Conservative Leon Benoit
Thank you, Mr. Wilfert. Your time is up.
We'll now actually go to the Bloc, and Monsieur Cardin.
Serge Cardin Bloc Sherbrooke, QC
Thank you, Mr. Chairman.
Good morning, gentlemen.
To all intents and purposes, the Canadian International Trade Tribunal, the CITT, applies the act and regulations according to WTO rulings.
Let us take the example of China. Generally speaking, in some areas Canada decided some time ago to assume that all economies were market economies under the Special Import Measures Act, and that it was necessary to prove that the opposite was true.
Now, if we take the narrow WTO view, while Canada is applying this rule, why are other countries as important as those in Europe, the U.S., Mexico and Japan not recognizing that China has a market economy?
Chair, Office of the Chairman, Canadian International Trade Tribunal
First of all, the decision about the market economy was made by the Canada Border Services Agency, and not by the Canadian International Trade Tribunal. It is up to the agency to review the industry in question to determine whether there is really a free market in this area. It does not make a decision until this has been done.
Bloc
Serge Cardin Bloc Sherbrooke, QC
From that point of view, the market economy is preventing us from identifying a certain level of dumping through the...
Chair, Office of the Chairman, Canadian International Trade Tribunal
Yes, but as I was saying, it is really up to the agency to determine the subsidization or dumping margin. That is not something the Tribunal does.
We use the data put out by the agency. If it is decided that there is injury, on the review of other factors, the agency will definitely levy a tax on the imports according to the margin it determined.
Bloc
Serge Cardin Bloc Sherbrooke, QC
In your statement, you talked about inquiries into the safeguard measures with respect to China. Generally speaking, the business community and the general public are all under the impression that our doors are wide open to Asian imports, including China and that there are no limits on what is imported.
However, you said that certain provisions were applied directly to China. You spoke about some measures that are to expire on December 11, 2013.
Would you please summarize quickly what these measures are regarding China?
Chair, Office of the Chairman, Canadian International Trade Tribunal
All countries that become members of the WTO must pay a price initially. In the case of China, it agreed that WTO members would apply safeguard measures where necessary. These measures are different, stricter than normal, for a transitional period. That period ends in 2011.
Chair, Office of the Chairman, Canadian International Trade Tribunal
It is 2013. I am sorry.
Chair, Office of the Chairman, Canadian International Trade Tribunal
Yes. Let us say that the level of proof is much lower than in the case of a normal safeguard measure.
Bloc
Serge Cardin Bloc Sherbrooke, QC
When you refer to material injury, you distinguish between “significant” and “principal”. Could you explain the difference for me, please?
Chair, Office of the Chairman, Canadian International Trade Tribunal
Deciding what is significant and what is not is often a concern to tribunal members.
When we see the injury that could be caused by imports from China in this context, we accept that this injury is much less significant in order to apply the measure. On the other hand, in the case of a normal safeguard measure, this must be the principal cause of the injury.
I know that this is not specific or mathematical, but given the tribunal's experience, we distinguish between the most significant reasons and a reason.
Conservative
The Chair Conservative Leon Benoit
Thank you, Monsieur Cardin, your time is up. We will go now to the government side.
Just for the information of the witness, Ms. Guergis is going to ask a question, and then Mr. Cannan will go right into his questions, and they would like you to answer all the questions together.
Go ahead, Ms. Guergis.
Conservative
Helena Guergis Conservative Simcoe—Grey, ON
Thanks very much.
I'm just taking a look at the information I've been given here about appeals. It says that the CITT actually hears appeals on the decisions of the Canada Border Services Agency, but they also hear them for the Minister of National Revenue under the Excise Act. I was hoping you could give some specific examples of this.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
Thank you, Mr. Chairman, and thank you for your presentation this morning. I've got six questions. There are some shorter ones, and you can expound and answer later.
Who can initiate a complaint, business or industry individually? Can they come and make an application?
Chair, Office of the Chairman, Canadian International Trade Tribunal
Excuse me, if you have a whole bunch of questions, and they're short, I could answer one after the other, rather than--
Chair, Office of the Chairman, Canadian International Trade Tribunal
No? Okay.
Conservative
Chair, Office of the Chairman, Canadian International Trade Tribunal
Okay.
Conservative
Ron Cannan Conservative Kelowna—Lake Country, BC
So who can initiate a complaint, an individual or business, or does it have to be an association? What is the average cost of a complaint? What is the timeline for the complaint? And if there is an appeal, can you describe the appeal process, which Ms. Guergis alluded to? You can expound on the answer to her question on appeals.
What is the cost? If the complainant is successful, i.e. if the recommendation from your review of the tribunal is favourable, is there a mechanism for cost recovery, such as the courts?
I come from the interior of British Columbia, from the horticulture community. The apple industry is a big part of our valley. Concerns about the oversupply of Washington apples have been going back and forth. There are often allusions to their being dumped into the community and bringing prices down and really causing a lot of challenges for the orchard community.
In number 11 and number 19 in your handout, you talk about mechanisms and the level of tolerance. In the softwood lumber agreement there's sort of an anti-surge mechanism, that with the pine beetle you could only have a 10% increase over previous years. What do you use as far as a level of tolerance goes to determine if there is a dumping situation? As you know, in the horticulture industry there can be so many determinants, weather being one of the big factors. What threshold or level of deviation do you provide within your interpretation?
There's some food for thought there for you. Thanks.
Conservative
