The Canadian government announced that beginning Oct. 25, 2018, seven steel products (heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire, and wire rod) will be subject to a surtax of 25%, in cases where the level of imports from trading partners exceeds historical norms.
Provisional safeguards are intended to provide Canadian steel producers and workers relief from the harm caused by excessive imports of steel products into Canada. The government also requested that the Canadian International Trade Tribunal (CITT) conduct an inquiry to determine whether final safeguards are warranted. The provisional safeguards will be in place for 200 days pending the CITT’s findings.
The government has created a committee that will make it easier for all relevant stakeholders to provide their views on requests for relief from countermeasures. Relief is only provided where warranted by exceptional circumstances, and Canadian countermeasures on US imports continue. Companies that have applied for and been granted relief can now import these goods without paying surtaxes. A portion of this relief will be temporary, offered until such time that Canadian producers are able to adequately meet domestic demand.