Inquiry into Corrosion-Resistant Steel Imports

Summary#

The Canadian International Trade Tribunal has started an inquiry (Inquiry No. NQ-2019-002) after the Canada Border Services Agency said it made a preliminary finding that certain corrosion-resistant steel sheet from the Republic of Turkey, the United Arab Emirates, and the Socialist Republic of Vietnam may be dumped and subsidized. The Tribunal will decide whether that dumping or subsidizing has caused, is causing, or threatens to cause injury to Canadian industry. Deadlines in the notice include April 6, 2020 for participation notices and a public hearing beginning June 15, 2020.

What it does#

• Opens an inquiry under the Special Import Measures Act (SIMA) to examine whether the alleged dumping and subsidizing have harmed Canadian producers.
• Defines the product covered: corrosion-resistant flat-rolled carbon steel sheet in coils or cut lengths, with thickness up to 0.168 inches (4.267 mm) and width up to 72 inches (1,828.8 mm). It includes steel with small amounts of certain alloying elements: Boron (B) not more than 0.01%, Niobium (Nb) not more than 0.100%, Titanium (Ti) not more than 0.08%, and Vanadium (V) not more than 0.300%.
• Lists several exclusions to the product definition (for example, steel for passenger vehicles, aeronautic products, stainless steel, certain coated or pre-painted products, and perforated or tool steel).
• Invites interested parties to participate: parties and their counsel must file notices by April 6, 2020. A public hearing is set to start on June 15, 2020 in Ottawa.
• Notes confidentiality rules for information submitted, referring to the Canadian International Trade Tribunal Act requirements.

Who's affected#

• Canadian producers of corrosion-resistant steel sheet and other domestic steel makers who could report injury or compete with imports.
• Importers, distributors and exporters dealing in these specific steel sheets from the Republic of Turkey, the United Arab Emirates, and the Socialist Republic of Vietnam.
• Downstream manufacturers and buyers who use these steel sheets (for construction, appliances, industrial uses, etc.) may notice effects if import rules change.
• The notice itself excludes some users (e.g., parts for passenger automobiles and aeronautic products), so those specific supply chains are not part of this inquiry.

Why it matters#

• If the Tribunal finds that dumped or subsidized imports caused injury, it can lead to trade remedies under SIMA — for example, duties on imports — which can change the price and availability of the steel sheet in Canada.
• That could protect some Canadian steel jobs and plants, but it could also raise costs for companies that buy this steel.
• The inquiry is an early step, not a final decision. The process gives affected businesses and governments a chance to present evidence before any measures are put in place.