Trade Cases
Canada Initiates AD/CVD Investigation into Cold Roll Imports
Written by Sandy Williams
May 29, 2018
The Canada Border Services Agency initiated an investigation on May 25 into the dumping and subsidizing of certain cold-rolled steels in coils or cut lengths from China, South Korea, and Vietnam.
The investigation was prompted by a complaint from ArcelorMittal Dofasco. Cold rolled imports under the investigation increased from 85,075 metric tons in 2015 to 133,440 tons in 2016, and 146,116 tons in 2017. ArcelorMittal states that the subject imports captured over one-third of the Canadian market in only three years by undercutting domestic pricing and depressing margins.
The problem has been compounded by excess capacity in the steel and cold rolled sectors, especially in China, and weak market demand in China, Korea and Vietnam. Exports of CRS are expected to increase from China and Korea in 2018 and 2019. Vietnam is increasing capacity with two mills that were expected to come on line last year.
In its complaint ArcelorMittal Dofasco stated: “The imposition by the United States of tariffs on Chinese and Vietnamese CRS as a result of the section 232 investigation, and the agreement by Korea to reduce steel shipments to the United States by 30 percent, has created an incendiary situation, threatening to exacerbate the turmoil in global steel markets and divert increasing volumes of CRS to the Canadian market.”
A safeguard inquiry regarding CRS initiated by the European Commission in late March 2018 is expected to worsen the problem for Canada.
“These circumstances pose an unprecedented threat of injury to the Canadian domestic industry,” added Dofasco.
The complaint was supported by letters from Algoma and Stelco, who with ArcelorMittal Dofasco represent 100 percent of the Canadian production of cold rolled steel.
A statement of reasons regarding the initiation of the investigation will be released on June 8. Importer responses to CBSA are due by June 18 and exporter and government responses by July 3.
A preliminary determination will be made by Aug. 23 with reasons to follow by September. If an affirmative determination is made by CBSA, the following schedule for the investigation will be implemented.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Commerce launches probe into unfairly traded rebar imports
Here are the details and a case timeline for the rebar trade case recently initiated by the Commerce Department.
Leibowitz on Trade: Who is winning the tariff debate?
Most economists will tell you that universal tariffs will result in inflation and reduce demand, causing a recession or worse. (After all, this is what happened in the 1930s). It is a rare product that is so essential that demand will not go down if prices go up.
Canadian steel industry fears thousands of job losses from US tariffs
The Canadian steel industry is bracing for thousands of job losses because of US tariffs, the Canadian Steel Producers Association says.
US, Mexico mull tariff-rate quota system: Report
Could the US and Mexico end up with a tariff-rate quota system?
OCTG industry salutes Customs for catching trade crooks
The US OCTG Manufacturers Association is commending US Customs for intercepting another Thai company's attempt to illegally transship Chinese oil pipe to the US.