Question Period Note: Chinese Steel Dumping?

What is the government doing to address Chinese steel dumping?

• Canada is currently enforcing 17 antidumping and 14 countervailing duty measures on 17 steel products from China

• In 2018, the government enhanced Canada's trade remedy system and strengthened trade enforcement conducted by the Canada Border Services Agency (CBSA)

• In May 2019, the Government imposed final global safeguards on imports of heavy plate and stainless steel wire that will remain in place until at least October 2021

• In August 2019, the Government announced further enhancements to Canada's trade remedy system, as well as additional reporting requirements for Canada's steel import monitoring regime

• Canada also continues to work with like-minded countries to address the problem of global excess capacity and production through the G20 Global Forum on steel excess capacity.

Anti-dumping and Countervailing duty measures in place
Canada currently has 68 anti-dumping and 18 countervailing duty measures in place on 18 steel products from 24 countries. Out of these measures, Canada has 17 antidumping and 14 countervailing duty measures on 17 steel products from China.

Enhancements to Canada's trade remedy system and trade enforcement
In April 2018, the Government implemented measures to enhance Canada's trade remedy system. For example, the Canadian Border Services Agency (CBSA) can now conduct anti-circumvention investigations into whether anti-dumping and countervailing duties are being evaded. The CBSA was also provided with the flexibility to account for price distortions in the country of export when calculating dumping margins.
At the same time, the Government of Canada announced additional funding to strengthen border enforcement and address any diversion of imported steel given distortions in the global steel market, including a 50 per cent increase in CBSA officers fully dedicated to trade remedy investigations and compliance ($29 million over five years, $6.5 million ongoing).
Funding was also provided to Global Affairs Canada for staff dedicated to reviewing the accuracy and improving the timeliness of published steel import data ($1.6 million over five years, $0.3 million ongoing).

Steel safeguard
On May 13, 2019, Canada imposed final safeguards, in the form of tariff-rate quotas, on imports of heavy plate and stainless steel wire. These will remain in place until October 2021 and will be progressively liberalized, in accordance with Canada's international obligations. Imports from the U.S. and Mexico, as well as several other trading partners, are excluded from the final safeguards.

G20 global Forum on steel excess capacity
In 2016 , G20 Leaders called for the formation of a Global Forum on Steel Excess Capacity. At the October 26, 2019, Ministerial meeting, members could not reach consensus to extend the work of the Forum because China took the view that the mandate of the GFSEC has been fulfilled. Regardless, interested countries continue to meet to discuss the issue and hope China will re-join the group.

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