Investigation: Wire Rod Dumping from China, Egypt, Vietnam

Summary#

• On March 8, 2024, the Canada Border Services Agency (CBSA) opened an anti-dumping investigation under the Special Import Measures Act (SIMA) into the alleged injurious dumping of wire rod from China, Egypt and Vietnam.
• The Canadian International Trade Tribunal (CITT) will carry out a preliminary inquiry and must decide within 60 days whether there is a reasonable indication of injury to Canadian industry.

What it does#

• Starts an investigation into imports of wire rod that are allegedly being dumped (sold below fair value) into Canada from the named countries.
• Covers products normally classified in the tariff series beginning with 7213 and 7227 (the Gazette lists specific tariff numbers for customs classification).
• Triggers a preliminary inquiry by the CITT; if the CITT finds no reasonable indication of injury, the CBSA investigation will stop.
• Invites written submissions and evidence from interested parties. The CBSA asked to receive submissions by July 15, 2024. Any confidential material must be accompanied by a public, edited version.
• The CBSA will issue a Statement of Reasons within 15 days after the CITT decision; that statement will be available on the CBSA website or by contacting the SIMA Registry.

Who's affected#

• Canadian producers of wire rod and other domestic steel makers who say they face injury from the imports.
• Importers, distributors and buyers of wire rod in Canada who handle products classified under the 7213 and 7227 tariff series.
• Exporters and manufacturers of wire rod in China, Egypt and Vietnam whose shipments to Canada could be reviewed.
• Other businesses that use wire rod (construction, manufacturing, fasteners) may notice changes in supply or prices if measures are later imposed.
• If it’s unclear whether a specific business or product is covered, the CBSA product definition and tariff numbers on its website should be consulted.

Why it matters#

• If the CITT finds a reasonable indication of injury and the investigation continues, the process can lead to anti-dumping duties or other trade remedies that raise the cost of imported wire rod into Canada.
• That can protect some Canadian producers, but it may also raise costs for downstream manufacturers and buyers who use wire rod.
• The public and industry stakeholders have until July 15, 2024 to submit information that could influence the outcome.