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Federal Government Agency Takes Steps to Protect Canada's Producers of Carbon Steel Welded Pipe
Ottawa, January 24, 2008 - Today the Canada Border Services Agency (CBSA) announced the initiation of investigations into the alleged injurious dumping and subsidizing of certain carbon steel welded pipe originating in or exported from the People’s Republic of China.
The investigations follow a complaint filed by ArcelorMittal of Montréal, Quebec. The company alleges that the dumping and subsidizing of the goods in question are harming Canadian production by causing price erosion, price suppression, lost sales, reduced market share, lost revenues, reduced profitability, reduced production and overcapacity, lost employment and plant shut downs, increased inventory levels and impairment to make future investments.
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. 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.
The Canadian International Trade Tribunal will now begin a preliminary inquiry to determine whether the imports are harming Canadian producers. The Tribunal will issue a decision by March 25, 2008. While the Tribunal is examining the question of injury, the CBSA will investigate whether the imports are being dumped and/or subsidized and will make a decision by April 22, 2008.
If there is a large increase in harmful imports and the Tribunal decides that retroactive application of anti-dumping or countervailing duty is 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 within 15 days. More information on the CBSA’s Anti-dumping and Countervailing Program or the Special Import Measures Act, can also be found on this site.
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