Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Where Are the Domestic Manufacturers Who Need Antidumping Protection?

I do not know where are the domestic manufacturers as they appear to be quiet.  Also, all is quiet at the Canada Border Services Agency (CBSA) as few antidumping cases are currently in the investigation pipeline (so I hear from well placed sources). The domestic manufacturers who are having difficulty competing with low priced imports need to consider bringing an antidumping and/or countervailing duty case as an element of a market strategy or 5 year business plan.

There is a question as to whether there are trends in the Canadian cases that may be considered by domestic manufacturers in deciding whether to bring a Canadian case in 2011.  Here are my observations:

1) Lang Michener (now McMillan LLP) has a good track record for domestic indiustry complainants (I should note my self-interest as I am at McMillan LLP (formerly Lang Michener LLP) and my colleague Geoff Kubrick deserves credit for the successful results);

2) There is a trend towards findings of threat of injury - that is that the dumping and/or subsidization of the imported goods has not caused past or present injury to the domestic industry, but threatens to do so if the behaviour continues and the threat is imminent; and

3) If a case is brought against goods from China, an injury or threat of injury finding is more likely than if the case is brought against goods from the United States.

Here is a summary of the cases initiated or decided in 2010:

Case #1: Steel Grating

Trade Rememdy: AD/CVD

Goods: grating of carbon, alloy, or stainless steel, consisting of load-bearing pieces and cross pieces, produced as standard grating or heavy-duty grating, in panel form, whether galvanized, painted, coated, clad or platedCountries: China

Intiated: September 20, 2010

Stage: Preliminary Determination of Dumping and Injury made

Important Elements of Decision: N/A

Filed By: Cassels Brock

 

Case #2: Greenhouse Bell Peppers

Trade Rememdy: AD

Goods: greenhouse bell peppers

Countries: Netherlands

Intiated: March 22, 2010

Stage: Final Determinations

Important Elements of Decision: CITT made threat of injury finding

Filed By: Lang Michener LLP (now McMillan LLP)

 

Case #3: Polyiso Insulation Board

Trade Rememdy: AD

Goods: cellular polyurethane-modified polyisocyanurate thermal insulation board

Countries: United States of America

Intiated: October 8, 2009

Stage: Final Determinations

Important Elements of Decision: No injury and no threat of injury

Filed By: Faskens

 

Case #4: OCTG

Trade Rememdy: AD/CVD

Goods: oil country tubular goods

Countries: China

Intiated: August 24, 2009

Stage: Final Determinations

Important Elements of Decision: CITT found injury for certain goods and no injury for certain goods

Filed By: Lang Michener LLP (now McMillan LLP)

 

Case #5: Steel Plate

Trade Rememdy: AD/CVD

Goods: certain carbon steel plate and high strength low alloy steel plate

Countries: Ukraine

Intiated: July 6, 2009

Stage: Final Determinations

Important Elements of Decision: CITT found threat of injury

Filed By: multiple firms involved for Complainants

 

Case #6: Mattress Innersprings

Trade Rememdy: AD/CVD

Goods: certain mattress innerspring units

Countries: China

Intiated: April 27, 2009

Stage: Final Determinations

Important Elements of Decision: CITT found injury

Filed By: Lang Michener LLP (now McMillan LLP) 

My personal view is that a paradigm shift has occurred in the current economic climate and threat of injury is considered to be a realistic option in trade remedy cases.  While the term of protection may not be more than 5 years (but can be more than 5 years), a domestic manufacturer may receive a good 5 years of protection during which the importers of the Subject Goods must play by the rules and low priced imports should be significantly lessened by the CBSA's normal values calculations.  Depending on whether the CBSA determines to impose high dumping margins (and subsidy rates) against the Subject Goods by way of ministerial specification, the imports may disappear from the Canadian marketplace offering relief and market opportunities to the domestic industry.

For more information, please contact Cyndee Todgham Cherniak at 416-307-4168.

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