Good afternoon, honourable members of the committee. Thank you for the opportunity to speak today as part of your study.
Evraz is the leading producer of large-diameter pipe in North America, employing 1,800 people in Regina, Camrose, and Red Deer. We're in the midst of a $200-million-plus investment and upgrade in Regina to have the leading-edge steelmaking and pipeline technology and to be a world leader for quality and safety.
We also employ about 1,500 people in the United States, and we are the largest producer of rail steel in the United States and North America.
I'm confident that Evraz can compete with any steel producer in the world under fair conditions of competition. We have excellent skilled workers. We are positioned to invest, compete, and succeed. However, we face four key challenges that undermine our competitiveness.
First, as Kalyan and others have talked about, global overcapacity in steel leads to unfair pricing and job losses in Canada. China has heavily subsidized and overbuilt its steel industry. China has more than 60% of the global steel overcapacity, and exports more than 10 times the size of the Canadian market annually.
Evraz has suffered job losses due to dumped and subsidized Chinese steel. We ask that the government continue to push for concrete, binding actions for a reduction in excess capacity, to bring much needed market-based discipline globally.
China is not the only problem. For example, Korea is the next largest exporter of steel to North America. Unfair Korean pricing has caused disruptions in many market segments. While Chinese overcapacity is the long-term problem requiring vigilance, fighting dumping in the short term is critical. While we know that this dumping often comes from our allies and their own capacity. Reliance on exports is not a reason for Canada to be harmed.
Second, free trade must be fair. A strong trade remedy system is vital to a strong domestic market. As the United States continues to tighten its trade position, Canada will represent an attractive alternative market for low-priced steel from around the world. We're very appreciative of Canada's trade remedy system and the efforts we hope the government is going to make and will continue to make.
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Third, the carbon pricing mechanisms should be carefully implemented. We support the government's priority of addressing climate change in a balanced approach. Canadian steel is the cleanest steel for Canada. Chinese steel has more than five times the carbon footprint of Evraz steel. Measures that place Canadian producers at a disadvantage at home against heavier polluters are not good for middle-class jobs or the environment.
Finally, we encourage the government to remain engaged with our industry regarding any trade negotiations with the United States. In 2016, 88% of steel exports from Canada were to the U.S. The U.S.-Canada steel trade is a model relationship, balanced, integrated, and without trade disputes. Our customers do not see a border.
We serve pipeline companies in the U.S. and Canada from Regina, and railroads in the U.S. and Canada from Colorado. In the past three years we have averaged $360 million in sales crossing the border in each direction, approximately even going each way. Market access for our Canadian-made steel is vital for Evraz and our customers. We are thankful for the strong and constructive stand of the government on this make-or-break issue.
To protect middle-class jobs in both countries, it is imperative that Canada strongly represent its interest against possible expansions of Buy America, especially for private transactions such as any domestic content requirement for U.S. pipelines.
I'm confident that we can continue to grow well-paying, skilled, middle-class jobs. When market forces prevail, when a level playing field for competition exists, and when the Canadian steel industry has fair market access, we will succeed.
I look forward to answering any questions you may have.
Thank you so much.