Investigations into Wind Towers from China

Summary#

On April 21, 2023, the Canada Border Services Agency opened investigations under the Special Import Measures Act into alleged dumping and subsidizing of certain wind towers imported from China. The Canadian International Trade Tribunal will hold a preliminary inquiry into whether Canadian industry is being injured and must decide within 60 days.

What it does#

• Starts investigations into alleged injurious dumping and subsidies on certain wind towers from China.
• Identifies likely tariff numbers for the goods as 7308.20.00.00, and possibly 8502.31.00.00 if imported with other turbine parts (for example, a nacelle or rotors).
• Directs the Canadian International Trade Tribunal to carry out a preliminary inquiry on injury and issue a decision within 60 days of the start of the inquiry.
• Says investigations will stop if the Tribunal finds no reasonable indication of injury.
• Requires the Canada Border Services Agency to publish a Statement of Reasons within 15 days after the Tribunal’s decision.
• Invites interested parties to submit written evidence; submissions must be received by August 29, 2023. Confidential submissions must include a non‑confidential edited version.

Who's affected#

• Canadian manufacturers of wind towers and related components.
• Importers and distributors that bring wind towers or complete turbine assemblies into Canada, including those sourcing from China.
• Project developers and utilities buying turbines for wind farms, who could face changes in price or supply.
• The Canada Border Services Agency and the Canadian International Trade Tribunal as the agencies running the process.
• If the exact product covered is unclear, the full product definition is available on the Canada Border Services Agency website.

Why it matters#

• If the investigations find dumping or illegal subsidies and injury, duties could be imposed on the imported wind towers. That could raise costs for buyers and shift where towers are sourced from.
• A finding of no injury would end the investigation and avoid trade remedies.
• There is a clear deadline (August 29, 2023) for industry players and others to provide evidence if they want to influence the outcome.