Canada Bolsters Prevention of Transshipment and Diversion of Steel and Aluminum Products Through Country of Origin Marking Regime
May 30, 2018 – Ottawa, Ontario – Department of Finance Canada
The Government of Canada is taking action to support Canadian steel and aluminum workers and industries by further bolstering efforts to prevent transshipment and diversion of unfairly priced foreign steel and aluminum into the North American market.
Today, Finance Minister Bill Morneau announced that Canada has aligned its country of origin marking regime for steel and aluminum products with that of our closest trading partner, the United States. These regulatory changes expand the scope of steel and aluminum products that need to be marked with their country of origin, and amend the criteria used to determine the country of origin for marked goods. Aligning with U.S. requirements will help support effective customs enforcement by ensuring more consistent and predictable treatment of these goods by Canadian and U.S. authorities. These improvements to the marking regime were made following a recent consultation through the Canada Gazette.
Better aligning the marking regime with that of the United States builds on new funding of more than $30 million over five years, starting immediately, and $6.8 million per year thereafter to hire 40 new officers to investigate trade-related complaints, including those related to steel and aluminum, and to improve the accuracy and timeliness of published steel import data. This is in addition to recent regulatory changes that allow the Canada Border Services Agency (CBSA) to identify and stop companies that try to avoid duties, and that give the CBSA greater flexibility in responding to situations where prices charged in the exporter's domestic market are distorted.
The Government of Canada also regularly consults with provincial-territorial representatives, as well as industry and union stakeholders, through recently established trade monitoring committees on steel and aluminum, to ensure imports do not hurt Canadian and North American jobs.
Canada continues to monitor the trade situation closely, and will take additional steps as needed to support our industries. This includes working closely with the steel industry to determine whether any broader trade measures, such as safeguards, may be appropriate to address the diversion of steel into the Canadian market.
"Canada is vigilant, determined and proactive about protecting our workers and industries from unfair trade practices. These new regulations continue to demonstrate Canada's commitment to fair and open trade that results in growth that works for everyone and strengthens Canada's global competitiveness."
- Bill Morneau, Minister of Finance
In 2017, the Canadian steel industry employed more than 23,000 Canadians and contributed $4.2 billion to Canada's gross domestic product (GDP).
The Canadian aluminum industry employed 10,500 workers while contributing $4.7 billion to Canada's GDP.
These industries are vital suppliers to the Canadian manufacturing, energy, automotive and construction industries.
- Canada Gazette, Part I, Volume 152, Number 17: Invitation to submit views on proposed amendments to the NAFTA and Non-NAFTA Country of Origin Marking Regime
- Canada further strengthens trade enforcement to protect steel and aluminum workers and industries
- Canada acts to further prevent transshipment and diversion of steel and aluminum to protect North American workers against unfair trade
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Office of the Minister of Finance
Department of Finance Canada
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