Canada-U.S. Blog Trade Lawyers Cyndee Todgham Cherniak and Susan K. Ross

Canada Commences Review Of Carbon Welded Steel Pipe Order After WTO DSB Panel Report

Posted in Antidumping, World Trade Organization

In December 2016, Canada lost a World Trade Organization (“WTO”) dispute (Canada – Anti-Dumping Measures on Imports of Certain Carbon Steel Welded Pipe from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (DS482)) concerning the Canadian International Trade Tribunal injury determination in the Carbon Steel Welded Pipe case NQ-2012-003 (which involved Chinese Taipei, the Republic of India, the Sultanate of Oman, the Republic of Korea, Thailand, the Republic of Turkey and the United Arab Emirates and the subsidizing of carbon steel welded pipe originating in or exported from the Republic of India, the Sultanate of Oman and the United Arab Emirates).

On July 21, 2017, pursuant to paragraph 76.1(1)(b) of the Special Import Measures Act, the Minister of Finance asked the Canada Border Services Agency (“CBSA”) and the  Canadian International Trade Tribunal (the Tribunal) to review its finding of December 11, 2012, in Inquiry No. NQ-2012-003, that certain carbon steel welded pipe originating in or exported from Chinese Taipei was threatening to cause injury to the domestic industry having regard to the WTO panel report. This request was not published online by the Minister of Finance and as a result, parties were not given an opportunity to comment.

It is unclear why the Minister of Finance isolated the request to only Chinese Taipei when a producer in the United Arab Emirates (Conares) also achieved a 0% dumping margin in the original dumping investigation.  The WTO case was brought by Chinese Taipei and the United Arab Emirates was a third party who participated in the WTO DSB process, the WTO DSB Panel Report analysis would also apply to Conares.

On July 28, 2017, the CBSA issued a Notice initiating a review of the final determination of dumping with respect to certain Carbon Steel Welded Pipe originating in or exported from Chinese Taipei. The CBSA will conclude its review by September 29, 2017. The CITT will then conduct a review of its threat of injury finding.  The CBSA schedule is as follows:

August 22, 2017 – Submissions are due from all parties

September 5, 2017 – Reply Submissions are due from all parties

September 29, 2017 – The CBSA will issue its decision

On July 28,2017, the CITT commenced a review of the injury decision (NQ-2012-003R) as requested by the Minister of Finance. The Schedule for the review is as follows:

August 25, 2017 – Notices of Participation are due

October 10, 2017 – The CITT will distribute the Investigation Report

October 24, 3017 by noon – Submissions from all parties are due

November 3, 2017 by noon – Reply Submissions from all parties are due

December 8, 2017 – CITT Decision will be released

On July 28, 2017, the CITT also issued an LE Notice regarding the Carbon Steel Welded Pipe case (NQ-2012-003) asking if an expiry review should be conducted.  Since it is a steel case, an expiry review will undoubtedly be determined to be necessary.  The Schedule for the LE review is as follows:

August 25, 2017 – Notices of Participation are due

October 10, 2017 – The CITT will distribute the List of Participants

October 24, 3017 by noon – Submissions from parties opposing an expiry review (usually importers and foreign producers/exporters, and users of carbon steel welded pipe) are due – Submissions should include concise argument and supporting evidence concerning:

  • the likelihood of continued or resumed dumping and subsidizing of the goods;
  • the likely volume and price ranges of dumped and subsidized imports if dumping and subsidizing were to continue or resume;
  • the domestic industry’s recent performance, including supporting data and statistics showing trends in production, sales, market share, domestic prices, costs and profits;
  • the likelihood of injury to the domestic industry if the finding were allowed to expire, having regard to the anticipated effects of a continuation or resumption of dumped and subsidized imports on the industry’s future performance;
  • any other developments affecting, or likely to affect, the performance of the domestic industry;
  • changes in circumstances, domestically or internationally, including changes in the supply of or demand for the goods, and changes in trends in, and sources of, imports into Canada; and
  • any other matter that is relevant.

November 3, 2017 by noon – Submissions from parties supporting an expiry review (domestic industry) are due

December 8, 2017 – CITT Decision will be released

The expiry review process will occur in 2018 with a decision expected in November or December 2018.

For more information about Canada’s expiry review process or the current reviews, please contact Cyndee Todgham Cherniak at 416-307-4168 or at cyndee@lexsage.com.  It should be noted that Cyndee Todgham Cherniak represented Conares in NQ-2012-003 and the CBSA dumping investigation during which Conares received a 0% dumping margin.