Tribunal recommends safeguards for two out of seven steel goods investigated

The Canadian Government is expected to make a final decision on safeguards by mid-May.

The Canadian International Trade Tribunal was instructed in October 2018 to inquire to determine whether seven classes of steel goods were being imported into Canada in such increased quantities and under such conditions as to be a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods. The Tribunal was directed, if it made an affirmative finding for any class of goods, to recommend the most appropriate remedy to address the injury or threat thereof.

The Government of Canada then imposed provisional safeguards on imports of the seven products: heavy plate, concrete reinforcing bar (rebar), energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire and wire rod. The provisional safeguards came into force on October 25, 2018.

The Tribunal has now issued its report which includes its determination, reasons and recommendations:

• The Tribunal finds that heavy plate from the subject countries (other than goods originating in Korea, Panama, Peru, Colombia and Honduras) is being imported in such increased quantities and under such conditions as to be a principal cause of a threat of serious injury to the domestic industry. The Tribunal therefore recommends a remedy in the form of a tariff rate quota (TRQ) on imports of heavy plate from subject countries, other than goods originating in Korea, Panama, Peru, Colombia, Honduras, or countries whose goods are eligible for GPT treatment.

• The Tribunal finds that, while there has been a significant increase in the importation of concrete reinforcing bar from the subject countries, this increase as well as the conditions under which the subject reinforcing bar is being imported have not caused serious injury, and are not threatening to cause serious injury, to the domestic industry. The Tribunal therefore does not recommend a remedy in respect of concrete reinforcing bar.

• The Tribunal finds that, while there has been a significant increase in the importation of energy tubular products from the subject countries, this increase as well as the conditions under which the subject energy tubular products are being imported have not caused serious injury, and are not threatening to cause serious injury, to the domestic industry. The Tribunal therefore does not recommend a remedy in respect of energy tubular products.

• The Tribunal finds that hot-rolled sheet imported from the subject countries is not being imported in such increased quantities as to cause or threaten to cause serious injury to the domestic industry. Given that a safeguard measure can only be applied if a product is being imported in such increased quantities, the Tribunal does not recommend a remedy in respect of hot-rolled sheet.

• The Tribunal finds that pre-painted steel imported from the subject countries is not being imported in such increased quantities as to cause or threaten to cause serious injury to the domestic industry. Given that a safeguard measure can only be applied if a product is being imported in such increased quantities, the Tribunal does not recommend a remedy for pre-painted steel.

• The Tribunal finds that stainless steel wire imported from the subject countries (other than goods originating in Korea, Panama, Peru, Colombia and Honduras) is being imported in such increased quantities and under such conditions as to be a principal cause of a threat of serious injury to the domestic industry. Therefore, the Tribunal recommends a remedy in the form of a TRQ on imports of stainless steel wire from subject countries, other than goods originating in Korea, Panama, Peru, Colombia, Honduras, or countries whose goods are eligible for GPT treatment.

• The Tribunal finds that wire rod imported from the subject countries is not being imported in such increased quantities as to cause or threaten to cause serious injury to the domestic industry. Given that a safeguard measure can only be applied if a product is being imported in such increased quantities, the Tribunal does not recommend a remedy for wire rod.

The Tribunal’s report is a recommendation. The Canadian Government is free to take a different course and is expected to make a decision by mid-May when the provisional measures are set to expire.

Link: Inquiry No. GC-2018-001 Safeguard Inquiry into the Importation of Certain Steel Goods