Canadian Border and Trade Agencies Investigate Allegations of China Steel Dumping

(The Canadian Press)

The Canada Border Services Agency said Thursday it is investigating allegations of dumping and subsidizing of certain carbon steel welded pipe from China after a complaint was made by ArcelorMittal out of Montreal.

Also Thursday, the Canadian International Trade Tribunal said it will look into the complaints and decide by March 25 if the alleged dumping and subsidizing has injured the domestic steel industry.

“If there is a large increase in harmful imports and the Tribunal decides that retroactive application of anti-dumping or countervailing duty is justified, duty could be levied on the goods brought into Canada as of today,’’ the tribunal said in a statement.

According to the border agency, ArcelorMittal alleges that the dumping is creating “price erosion, price suppression, lost sales, reduced market share, lost revenues, reduced profitability, reduced production and overcapacity, lost employment and plant shut downs, increased inventory levels and impairment to make future investments.’’

Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter’s domestic market or at unprofitable prices. Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.

Officials at ArcelorMittal could not immediately be reached for comment.

Arcelor SA acquired Hamilton-based Dofasco in 2006, and in 2007 Dofasco became a part of ArcelorMittal after Mittal Steel bought Arcelor, to create the world’s largest steelmaker.