Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Canada's CITT Makes No Injury Finding in Copper Pipe Case

On March 28, 2007, the Canadian International Trade Tribunal determined that the dumping of copper rod origininating in or exported from Russia and Brazil and the subsidization of copper rod from Brazil had not caused, was not causing and did not threaten to cause material injury to the domestic industry.  The reasons for the determination were issued on April 12, 2007.

The CITT highlighted in its Reasons that the complainant was the sole domestic producer in the Canadian market and that it exported 2/3 of its production.  Further, the CITT noted that based on the evidence, the following four factors had a significant effect on the Complainant's business:

1) the diversification policies for supply put in place by some of its customers in 2003 - which led to a customer (Prysmain) making a decision  that having a sole supplier of copper rod was not desirable;

2) difficulties arising from a missed payment for the Complainant's product by Prysmain in late 2004;

3) a change in the terms of payment imposed by the Complainant against Prysmain in 2006;

4) the emergence of the United States as an increasingly important source of copper rod in the canadian market in 2005 and 2006.

After a review of the details of these effects of these factors on the Complainant, the CITT determined that the evidence on the record failed to provide a nexus between the dumping/subsidization and most of the alleged injury.

This determination  demonstrates the importance for importers and exporters to get involved in anti-dumping and subsidization proceedings and in particular the injury inquiry.  This evidence could not have been presented if interested parties had not come forward to present the evidence that the CITT needed to understand the true state of the market.

If you would like to read a copy of the CITT decision, please click on CITT File No. NQ-2006-003.

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