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Investigation into possible dumping of large line pipe from China & Japan

March 31, 2016

The Canada Border Services Agency (CBSA) launched an investigation into whether or not certain large line pipes from China and Japan are being sold at unfair prices into the Canadian market. It will also investigate whether or not China subsidizes exports of these goods.

The investigations follow a complaint filed by manufacturers in Saskatchewan and Alberta. The complainants allege that jobs, profits and productivity in Canada are being harmed by the sale of these goods.

Following the CBSA's investigation launch, the Canadian International Trade Tribunal (CITT) began a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by May 23, 2016.

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 June 22, 2016.

Large line pipes can be used to create pipelines that carry oil or gas. In this case, the large line pipes are made of carbon and alloy steel.

Anti-dumping and countervailing duties could eventually be applied to the goods under investigation. Although such duties are normally only applied to goods released on or after the date of the CBSA's preliminary determination, if the Tribunal determines that an unusually large increase in harmful imports has occurred prior to the CBSA's decision and that the retroactive application of anti-dumping duty is therefore justified, duty could be levied on the goods brought into Canada as of the investigation's starting date.

Link: CBSA Notice of Initiation of Investigations

Link: CITT Preliminary Injury Inquiry No. PI-2015-003

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