TRADE CASES HEADLINESTrade Cases
Canadian Agency to Investigate Dumping, Subsidizing of Carbon Steel Welded Pipe
May 15, 2012
The Canada Border Services Agency (CBSA) is initiating investigations into the alleged injurious dumping of carbon steel welded pipe from Chinese Taipei, the Republic of India, the Sultanate of Oman, the Republic of Korea, Thailand, the Republic of Turkey and the United Arab Emirates. The CBSA is also initiating investigations into the alleged injurious subsidizing of some carbon steel welded pipe from the Republic of India, the Sultanate of Oman and the United Arab Emirates.
The investigations follow a complaint filed by Novamerican Steel Inc. of Montréal, Que., and Bolton Steel Tube Co. Ltd., of Bolton, Ont. The complainants allege that dumping and subsidizing of these goods are harming Canadian production by causing price depression/suppression, lost market share, lost sales, reduced capacity utilization, reduced profits, and reduction in employment.
Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter's domestic market or at unprofitable prices, whereas subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.
As part of its injury inquiry, the Canadian International Trade Tribunal will determine whether such imports are harming Canadian producers, with preliminary findings to be rendered on July 13, 2012. While the Tribunal is examining the question of injury, the Canada Border Services Agency will launch a preliminary investigation into whether the imports are being dumped and/or subsidized, with its preliminary decision to be made by August 13, 2012.
If the Tribunal determines that an unusually large increase in harmful imports has occurred prior to the CBSA's decision, and that the retroactive application of anti-dumping or countervailing duty is therefore justified, duty could be levied on the goods brought into Canada as of today.
A copy of the statement of reasons, which provides more details about these investigations, will be available on the CBSA's Web site. More information on the CBSA's antidumping and countervailing directorate, or the special import measures act can also be found on this site.