Question Period Note: Foreign Trade Remedy (TR) Investigations (non-SWL)

Foreign trade remedy investigations address alleged dumping, subsidization and import surges that cause harm to domestic producers and can lead to border measures on Canadian exports.

• Canada is a trading nation and our businesses and workers rely on open and predictable market access into foreign markets.
• When foreign trade remedy investigations are launched against Canadian exports, we work actively with Canadian businesses, provinces and territories, as well as other stakeholders, to defend Canadian interests.
• When government support programs in Canada are targeted by an investigation, we will actively participate in the investigation to defend these measures.
• The Government will continue to support affected industry and monitor the conduct of investigations to ensure conformity with international obligations.

There are three types of trade remedy investigations: anti-dumping (AD); countervailing duty (CVD); and global safeguard. Importantly, AD/CVD investigations can lead to the imposition of duties to offset the injurious dumping and/or subsidization, whereas global safeguards can lead to the imposition of a temporary measure (e.g. tariff, tariff-rate quota, quantitative restriction) to provide relief from import surges. Once imposed, AD and CVD measures generally remain in place for 5 years and can be renewed. Global safeguards are generally implemented for up to 4 years, and liberalized over time, but can be extended up to a maximum of 8 years. Dumping occurs when goods are being sold into a market at prices below those in the market of export or below cost of production. AD investigations address the private commercial pricing practices of companies and therefore government engagement in the investigation is limited. However, in certain cases the Government may participate more actively, such as when there are specific systemic issues to address of importance to Canadian interests. Subsidization occurs when exported goods benefit from a financial contribution (e.g. grants, loans, tax incentives, equity investment, provision of goods or services) by a government or a public body. Given that government support measures are directly implicated, the government itself is a participant in the case. Global safeguards provide temporary relief to allow domestic industry to adjust to surges in imports. Unlike anti-dumping and subsidy investigations, global safeguards consider imports of a product from all trading partners.
Ongoing foreign trade remedy investigations implicating Canada (excluding softwood lumber):
-AD: China (canola seed, halogenated butyl rubber); Israel (medical cannabis); Brazil (polyethylene resin)
-AD/CVD: U.S.(corrosion resistant steel)
-Global Safeguard: China (beef)

Foreign measures implicating Canadian exports (excluding softwood lumber):
-AD: Brazil (sodium acid pyrophosphate); Pakistan (cold-rolled steel coils); U.S.(polyethylene terephthalate resin, iron construction casting)
AD/CVD: EU, UK (biodiesel); U.S. (utility scale wind towers)

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