Trade Cases

Canada Considering Safeguards on Steel Imports
Written by Sandy Williams
August 17, 2018
Canada is considering provisional safeguard measures on seven classes of steel imports to prevent foreign steel shipments from being diverted into Canada as a result of U.S. trade actions.
“We know that because of the unfair tariffs imposed by the United States, other countries will be seeking alternative markets for their steel products,” said Canadian Finance Minister Bill Morneau. “Canada is now at risk for a surge in imports of steel products, which could harm Canadian steel producers and workers. From our perspective this is just unacceptable.”
“Our government believes the tariffs levied by the United States represent an exceptional circumstance, and that’s why provisional safeguards are being considered,” said Morneau.
Statistics Canada reports iron and steel imports surged year-over-year in second-quarter 2018, especially from Brazil, Turkey and India.
Morneau said a 15-day consultation period, ending Aug. 29, will investigate whether certain steel imports are harming or threatening to harm Canadian producers. If a negative impact is found, tariffs and/or quotas may be imposed. The European Union has already implemented similar measures.
The categories subject to the potential provisional safeguards are: steel plate, rebar, energy tubular products, hot-rolled sheet, prepainted steel, stainless steel wire and wire rod.
Canadian steel producers would prefer to “return to a situation where there’s fair trade in steel,” said Joseph Galimberti, president of the Canadian Steel Producers Association. Measures taken by other countries are forcing Canada to respond, he said. “The government has to take similar steps to protect Canadian producers or face pretty serious consequences as a result of global diversion.”
Importers and fabricators fear that imposing safeguards will limit steel supply and drive costs even higher. Tom Whalen, CEO of the Petroleum Services Association of Canada, said companies that are hurt by the safeguards should receive compensation from Ottawa.
“If you’re building equipment, you’re going to use bits and pieces of pretty much all [the affected steel categories],” said Whalen.

Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases

US and Canada expect positive outcomes from tariff negotiations
Canadian Prime Minister Mark Carney and US President Donald Trump told reporters at the White House on Tuesday that they’ll be formulating a trade deal that works for both nations.

Leibowitz: When the shutdown should end
There is no doubt that the current government shutdown reflects the vast divisions between the extremes of American politics, society, and even geography. Almost all Americans agree that government is necessary, but voters disagree...

Price: The U.S. Steel shutdown that wasn’t and a call to stop ‘valuation cheating’
How can the U.S. government block U.S. Steel’s Granite City rolling mill closure without harming other American steelmakers? Reducing imports should be the first step. Foreign producers continue to aggressively target the U.S. market, especially now as they find themselves displaced by Chinese exports.

US steel industry applauds ITC final determination in coated trade case
Domestic mills praised the US International Trade Commission’s (ITC's) final determination that imports of corrosion-resistant (CORE) steel from 10 countries pose a threat to them.

ITC’s final ruling: Dumped, subsidized CORE imports are harming domestic market
The US International Trade Commission (ITC) finds that corrosion resistant steel (CORE) imports from 10 countries have caused material damage to domestic product producers, according to the ITC’s statement.