Tuesday, 02 Jun 2020

The CBSA launches investigations into certain sucker rods from China

OTTAWA, May 18: The Canada Border Services Agency (CBSA) announced today that it is launching an investigation into whether or not certain sucker rods from China are being sold at unfair prices in Canada. It will also investigate whether or not subsidies are being applied to certain sucker rods from China.

The investigations are the result of a complaint filed by Dover Canada ULC - Alberta Oil Tool Division of Edmonton, Alberta. The complainant alleges that as a result of price undercutting from China, Canadian industry faces price suppression, lost sales, reduced profitability and under-utilization of capacity.

Currently, there are 99 special import measures in force, covering a wide variety of industrial and consumer products, from steel products to refined sugar. These measures have directly helped to protect the Canadian economy and jobs in Canada.

Quick Facts

The subject goods are described as sucker rods, including pony rods, with or without couplings attached and with or without guides attached, manufactured to American Petroleum Institute (API) 11B specifications, equivalent standards or proprietary standards, including in a finished or semi-finished state, made of solid steel, including carbon, alloy and special grades of steel, of 2.5 inches (63.5 mm) or less in diameter of rod body, with stated measurements subject to permissible tolerances originating in or exported from the People's Republic of China.

The CBSA and the Canadian International Trade Tribunal (CITT) both play a role in investigations. The CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by July 17, 2018.

Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair and/or subsidized prices, and will make a preliminary decision by August 16, 2018.

A copy of the Statement of Reasons, which provides more details about these investigations, will be available on the CBSA's website at www.cbsa.gc.ca/sima-lmsi within 15 days.

To address the evolving nature of trade and to ensure the well-being of industries like steel that are essential to the Canadian economy, Canada is modernizing its trade remedy system. As part of our commitment, the CBSA is working with its trading partners, the United States and Mexico, to strengthen our trade remedy systems, improve transparency and coordinate our efforts against unfair trade practices.

In 2017, the Canadian steel industry employed more than 23,000 Canadians and contributed $4.2 billion to Canada's gross domestic product (GDP). The Canadian aluminum industry employed 10,500 workers while contributing $4.7 billion to Canada's GDP. These industries are vital suppliers to the Canadian manufacturing, energy, automotive and construction industries.

(PRN | 2 years ago)