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Ottawa, July 5, 2002
2002-058

Government Receives Tribunal Finding on Steel

The Canadian International Trade Tribunal (CITT) announced today that five out of nine imported steel products it investigated earlier this year have caused serious injury to Canada’s steel industry.

The CITT now has until August 19 to report to the Government the reasons for its findings and appropriate remedies for the injuries.

The Government cautioned importers not to accelerate shipments of the five products while CITT deliberations continue, noting that the Government will continue to closely monitor imports of these products.

“Now that the first stage of the CITT inquiry has been completed, we look forward to receiving the Tribunal’s recommendations on what appropriate measures would address these injuries,” said Secretary of State for International Financial Institutions Maurizio Bevilacqua.

The Government requested the CITT investigation on March 21 following a decision by the United States earlier this year to impose tariffs of up to 30 per cent on a number of steel products. The Government was concerned about high import levels and the possibility that U.S. barriers to steel imports would cause the diversion of foreign steel products into Canada, causing injury to Canadian producers.

For those four steel products that were found not to be injuring the Canadian industry, the investigation process is over. “We recognize that the possibility of future trade diversion still exists,” said International Trade Minister Pierre Pettigrew. “We will continue to closely monitor steel imports and, if significant trade diversion or unfair trade practices are detected, the Government will act in accordance with its multilateral and regional trade agreement obligations.”

The Tribunal also made a separate finding with respect to imports from Canada’s free trade partners. It found that imports from the United States have contributed to the problem with respect to four of the five products found to be causing injury. Under the North American Free Trade Agreement, imports from the United States included in any safeguard action are subject to special provisions.

The imported steel products found by the CITT to have caused serious injury are: discrete plate; cold-rolled sheet and coil; angles, shapes and sections; reinforcing bar; and standard pipe.

The following imported steel products were found not to be causing or threatening to cause injury: hot-rolled sheet and coil; corrosion resistant sheet and coil; hot-rolled bar; and cold-drawn bar and rod.

To access information on the CITT safeguard inquiry process, visit www.citt.gc.ca.

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