Russia and Belarus Added to NME List

Summary#

The final rule titled Regulations Amending the Special Import Measures Regulations adds Russia and Belarus to a list in the Special Import Measures Regulations. The change took effect when it was registered on February 15, 2023 and was published in the Canada Gazette on March 1, 2023.

What it does#

• Adds Russia and Belarus to section 17.1 of the Special Import Measures Regulations.
• That change makes it easier for the Canada Border Services Agency (CBSA) to treat goods from those countries as coming from a “non-market economy” (NME).
• In practice, the CBSA can more readily use third‑country prices or costs to calculate anti‑dumping duties for goods from those countries.
• The rule is already in force as of its registration on February 15, 2023.

Who's affected#

• Canadian producers competing with imports from Russia and Belarus — for example, steel makers who face dumped imports like concrete reinforcing bar (rebar).
• Importers of goods from Russia and Belarus may see higher anti‑dumping duties if new investigations find dumping.
• The Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal, which run Canada’s trade‑remedy system.
• Most consumers are unlikely to feel a direct impact because imports from these countries are currently small.

Why it matters#

• The change gives Canadian authorities more flexibility to account for government intervention and price distortions in Russia and Belarus. That can lead to higher anti‑dumping duties where investigators find unfairly low prices.
• It aligns Canada’s approach with actions already taken by the U.S. Department of Commerce and the European Commission on these economies.
• The practical effect may be limited now because Canadian imports from those countries are low (rebar from Russia was valued at $215,000 in 2021; there were no rebar imports from Belarus since 2019) and because of a 35% general tariff applied to most goods from those countries since March 2, 2022.