LexSage

Parliamentary Committee Makes
8 Recommendations Regarding
Canada’s Steel Industry

June 16, 2017
Authored by Cyndee Todgham Cherniak

On June 15, 2017, the Standing Committee on International Trade released Report No. 7 “The Canadian Steel Industry’s Ability to Compete Internationally”.  This Report is helpful to Canadian steel producers and not very helpful to steel importers.  China will not be pleased to read that the Committee recommends non-market economy status remain in place in Canada against China.

The Standing Committee on International Trade made 8 recommendations in Report No. 7:

Recommendation 1: That the Government of Canada proactively participate in discussions and initiatives of international organizations, the Organisation for Economic Co-operation and Development, for example that want to find solutions to global excess steel making capacity.

Recommendation 2: That the Government of Canada increase the visibility of trade remedy services and tools available to Canadian companies and that it proactively inform Canadian steel industry stakeholders when a decision is made regarding the imposition of anti-dumping duties or countervailing duties on steel products.

Recommendation 3: That the Government of Canada work with its closest trading partners, particularly the United States, to ensure that those countries and Canada have adequate and effective trade remedy systems in place and that Canada does not become a dumping ground for foreign steel.

Recommendation 4: That the Government of Canada reserve the right to use methods other than prices on the exporting country’s market to establish the dumping margin when foreign companies cannot prove that they are operating under market economy conditions.

Recommendation 5: That the Government of Canada consider the consequences of dumping and countervailable subsidies for all regions in Canada in steel import investigations and that it study the impact of the imposition of regional rather than national anti-dumping or countervailing duties, where appropriate.

Recommendation 6: That the Government of Canada assist Canadian steel producers in benefitting from the low carbon footprint of Canadian steel compared to foreign steel, including through government procurement processes that take carbon dioxide emissions into account when awarding contracts.

Recommendation 7:  That the Government of Canada preserve and advance fair trade by continuing to treat China as a non-market economy.

Recommendation 8: That the Government of Canada grant labour unions an expanded role in Canada’s trade remedy system, including the right to participate in trade remedy complaints.

Many of these recommendations have already been put into motion in the 2017 Budget.  Changes have been proposed to Canada’s Special Import Measures Act (Canada’s antidumping and countervailing duty legislation) (“SIMA”) and should become law when omnibus Bill C-44 receives Royal Assent and is implemented.  The relevant provisions are Sections 66-102.

For more information about Canada’s trade remedy laws, please call Cyndee Todgham Cherniak at 416-307-4168 or email cyndee@lexsage.com. 

This article first appeared on www.canada-usblog.com.  Reprinted with permission.