Mr. Speaker, Canadian producers harmed by unfairly traded, i.e., dumped or subsidized, imports may seek to have anti-dumping and countervailing duties applied to offset the injury caused by these imports. In accordance with the Special Import Measures Act, SIMA, duties can only be imposed following independent, impartial, and transparent investigations conducted by the Canada Border Services Agency, CBSA, and the Canadian International Trade Tribunal, which determine whether imports were dumped or subsidized, and whether such imports injured Canadian producers.
The steel industry regularly uses Canada’s trade remedy system to address dumped and subsidized imports. As of October 2017, Canada has 69 trade remedy measures in force that apply to 15 different steel products originating from 23 countries. The largest proportion of these measures concern imports from China. In all of the measures on primary steel from China, anti-dumping margins were calculated on a non market economy basis, to account for price distortions in that sector.
The government is committed to ensuring that Canadian producers injured by unfair trade have adequate remedies under domestic law, while ensuring consistency with Canada’s international trade obligations under the World Trade Organization, WTO. Since budget 2016, the government has taken steps to modernize and strengthen Canada’s trade remedy system to provide Canadian producers with a more rigorous response to unfair trade and better align Canada’s trade remedy system with those of our major trading partners.
In budget 2016, the government amended SIMA to extend the duration of anti-dumping and countervailing duties by up to eight months before being reviewed and to allow trade remedy investigations to continue to their final phase even if the margins of dumping found at the preliminary stage are insignificant. The government also committed to undertake public consultations on further measures to improve and enhance Canada’s trade remedy system.
In budget 2016, the government amended SIMA to extend the duration of anti-dumping and countervailing duties by up to eight months before being reviewed and to allow trade remedy investigations to continue to their final phase even if the margins of dumping found at the preliminary stage are insignificant. The government also committed to undertake public consultations on further measures to improve and enhance Canada’s trade remedy system.
These measures include creating a new anti-circumvention proceeding that would allow the CBSA to investigate allegations that anti-dumping and countervailing duties are being circumvented and, where warranted, to extend duties to address the circumvention.
The measures include creating a new scope proceeding that would establish a transparent process to allow interested parties, including domestic producers, to request a binding and appealable ruling as to whether a particular product is subject to anti-dumping and countervailing duties.
The measures include providing the CBSA with new tools to use alternative methodologies for calculating margins of dumping where price distortions in the country of export render those prices unreliable.
The measures include providing unions the right to participate in trade remedy investigations.
The legislative amendments to SIMA required to implement these measures received royal assent on June 22, 2017, as part of Bill-44, Budget Implementation Act, 2017, No.1. The government is working expeditiously on the regulatory amendments that are required to operationalize these new tools. Moving forward, the government will continue to work closely with Canadian industry in responding to the challenges of unfair trade.
The challenges of steel dumping and the underlying issue of global steel excess capacity are addressed in the House of Commons Standing Committee on International Trade, CIIT, report entitled “The Canadian Steel Industry’s Ability to Compete Internationally”, which was tabled on June 15, 2017. The CIIT report contains a number of recommendations to improve Canada’s trade remedy system and address the underlying problem of global steel excess capacity. The government tabled a detailed response to the CIIT report on October 17, 2017.