Trade Cases
USW Opposes Lifting of Canadian Safeguards on Steel Imports
Written by Sandy Williams
April 28, 2019
Canada will keep safeguard tariffs on imports of heavy plate and stainless steel wire—only two products of the original seven provisional safeguards implemented in October. In April, the Canadian International Trade Tribunal found that imports of hot-rolled steel, pre-painted steel, energy tubular products, rebar and wire rod did not pose a threat of “serious injury” to the domestic industry and recommended that the trade measures be removed on those products.
The Canadian United Steelworkers strenuously oppose terminating the five provisional safeguards.
“This government must not abandon Canadian workers and communities in their hour of need,” said USW National Director Ken Neumann. “Thousands of jobs across the country are now at risk due to the Trudeau government’s failure to maintain safeguards protecting Canada’s steel sector from a surge in foreign imports.”
Neumann says the safeguards were effective in supporting Canada’s steel sector during the last six months and noted that countries around the world have taken similar measures to protect their markets and workers.
“Even with the safeguards in place, market conditions in Canada have deteriorated and approximately 700 of our members have already been laid off,” he said.
The government is launching a 30-day consultation period with businesses to determine whether other protections are required. Neumann says that although the USW will participate, it may be “too little, too late” to avoid a surge in foreign imports.
Removal of the provisional safeguards is also thought to weaken Canada’s position in negotiating the lifting of the Section 232 tariffs imposed on Canadian steel by the U.S.
“We’ve been working tirelessly on both sides of the border to resolve the tariffs issue, but the U.S. administration remains concerned that Canada would appear to be either unwilling or unable to protect its steel market,” said Leo W. Gerard, USW International President.
Removal of the safeguards will also deter investment by Canada’s steel producers, said Neumann.
“Even with the government’s support for investment in the industry, steel companies are not going to invest in their Canadian facilities if Canada does not protect its market,” he said.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Industry piles on new Section 232 steel derivative inclusion requests
The Department of Commerce received 97 submissions from producers, manufacturers, and groups seeking Section 232 tariff coverage for steel and aluminum derivative products.
Price on Trade: New EU steel tariffs don’t mean the US should weaken its stance
Any steel imports into the EU that exceed the new, lower quota level would be subject to a 50% tariff, which represents a major increase from the EU’s current 25% out-of-quota tariff. This move would largely align the EU’s steel tariff rate with Canada and the United States.
Global steel forum sets 2026 framework deadline as US ups pressure on excess capacity
Global steelmakers sounded the alarm Friday over the deepening excess steelmaking capacity crisis. Ministers at the Global Forum on Steel Excess Capacity (GFSEC) in Gqeberha, South Africa, pledged to...
CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.