Canadian International Trade Tribunal Looks at Imports of Chinese Steel Grating

(Canadian Press)

A Canadian trade body is looking at whether imports of steel grating from China have been illegally subsidized and are hurting the Canadian steel industry. The Canadian International Trade Tribunal announced Tuesday it has begun a preliminary injury inquiry into a complaint by Fisher & Ludlow of Burlington, Ont., that it has been hurt by dumping and subsidizing of Chinese steel.

The tribunal is expected to issue a preliminary ruling on the complaint by Dec. 20. If a final ruling affirms the complaint and finds that Canadian companies have been hurt, the federal government can impose anti-dumping and anti-subsidy duties. Dumping occurs when a product is sold below fair-market value in the target country. Read more here.

CBSA Issues Results of Reinvestigation of Steel Plate from Certain Countries

(SteelOrbis)

On July 20, the Canada Border Services Agency (CBSA) concluded its reinvestigation of the normal values and export prices of certain steel plate originating in or exported from China, Bulgaria, the Czech Republic, Romania and Ukraine, pursuant to the Special Import Measures Act (SIMA).

The reinvestigation was initiated on March 23, 2010 as part of the CBSA’s enforcement of the the Canadian International Trade Tribunal’s relevant findings.

The subject goods are normally imported into Canada under one of the following ten-digit Harmonized System classification numbers: 7208.51.10.00, 7208.51.91.10, 7208.51.91.91, 7208.51.91.92, 7208.51.91.93, 7208.51.91.94, 7208.51.91.95, 7208.51.99.10, 7208.51.99.91, 7208.51.99.92, 7208.51.99.93, 7208.51.99.94, 7208.51.99.95, 7208.52.11.00, 7208.52.19.00, 7208.52.90.10, 7208.52.90.91, 7208.52.90.92, 7208.52.90.93, 7208.52.90.94 and 7208.52.90.95.

Normal values were determined as follows:

Subject countries	Normal value margin (%)
China	80.2
Bulgaria, the Czech Republic, and Romania	74.6
Ukraine	21.3

All normal values previously in place expired on July 16, 2010.

U.S. Sets Preliminary Penalties on Chinese Drill Pipe

(Xinhua)

The U.S. Commerce Department Tuesday set preliminary countervailing duties (CVD) on imports of some 119.2 million dollar drill pipe from China, a move might escalate trade disputes between the two countries.

The department said in a statement that it “preliminary determined that Chinese exporters of drill pipe have received countervailable subsidies of 15.72 percent.”

As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates.

In 2009, imports of drill pipe from China were valued at an estimated 119.2 million dollars, according to the Commerce Department.

The department said that it is currently scheduled to make its final determination in August 2010. Read more here and here.

Anti Dumping Cases Increase as the Technique Becomes More Widely Adopted

(Metal Miner)

Fine words were espoused from all quarters during the economic crisis that countries would not adopt protectionist measures, but one year on and we can see that few have held to that line. The U.S. and Canadian authorities’ action over steel tubes and fasteners from China is one that naturally hit the headlines but to be fair the North Americans are far from alone.

Of course countries do not even have to apply a duty, just the threat of a case being under investigation is enough to choke off imports as the supply chain does not want to be caught holding material if a levy is applied. So when the

Russian government extended its year-long anti-dumping investigation into imports of nickel-bearing flat stainless steel products from China, Korea, Brazil and South Africa they were in effect extending a protectionist move without needing to actually apply a rate. The investigation, which commenced on 27 March 2009, will go on for another three months, the Russian ministry of industry and trade said. Meanwhile the €840/metric ton (US$1180/metric ton) import duty on stainless with nickel content of 2.5% or higher from the European Union expired on 20 March and although there is currently no sign of a new investigation into European stainless, “… producers will have to make some effort in order to reinstate their presence on Russian market,” Steel Business Briefing reported a Russian special steel association spokesman as ominously saying. […]

China was targeted in 116 anti-dumping and anti-subsidy cases last year, with more than US$12 billion involved…

Good work for the lawyers. Will all this legal wrangling ease as markets come out of recession and gradually return to strong growth, probably not. Whatever lawmakers say, anti-dumping and similar trade disputes have become a course of action favored as first resort by domestic metals producers and unions the world over. A sophisticated network of agencies has grown up on the back of it, lawyers, analysts and lobbyists, which can be swung into action if a case looks sufficiently promising. We are not saying many of the cases are not justified; currency manipulation is clearly a major cause of the problems with China; for example, if the Yuan was free floating the U.S. and Europe would have a lot less to complain about. But there are also a large number of cases where the process is used as blatant protectionism. Read more here.

Memorandum D15-2-55: Certain Carbon Steel Plate and High Strength Low Alloy Steel Plate Originating in or Exported from Ukraine

(CBSA)

This memorandum refers to the application of anti-dumping duty to importations of certain carbon steel plate and high strength low alloy steel plate originating in or exported from Ukraine.

SIMA Re-investigation Certain Steel Plate

(CBSA)

The Canada Border Services Agency has initiated a re-investigation of the normal values and export prices of certain steel plate originating in or exported from the People’s Republic of China (Plate III); Republic of Bulgaria, the Czech Republic and Romania (Plate V); and Ukraine (Plate VI).

Should you have any questions regarding this re-investigation, please contact one of the officers listed below.

Matthew Lerette: 613-954-7398
Benjamin Walker: 613-952-8665

Facsimile: 613-948-4844

Canadian International Trade Tribunal Issues Order: Carbon Steel Pipe Nipples and Adaptor Fittings From China

(MarketWatch)

The Canadian International Trade Tribunal today issued an order following the expiry review of its finding made on July 16, 2003, as amended on June 8, 2007, concerning carbon steel pipe nipples and adaptor fittings, in nominal diameters up to and including 6 inches or the metric equivalents, originating in or exported from the People's Republic of China.

The Tribunal found that the dumping of carbon steel pipe nipples and adaptor fittings from China was likely to result in injury or retardation. The Canada Border Services Agency will therefore continue to impose anti-dumping duties on these products.

The Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters. More information available at the CITT website.

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.