On May 7, 2024, the Canadian International Trade Tribunal (the “CITT”) issued a preliminary determination of injury, concluding that there was evidence that the alleged dumping of certain wire rod from China, Egypt and Vietnam has caused material injury to the domestic industry.

Background Information

On March 11, 2024, following the initiation of an anti-dumping investigation by the Canada Border Services Agency (the “CBSA”), the CITT initiated a preliminary injury inquiry in respect of alleged dumping of wire rod, which we covered in a previous blog post. 

The goods under investigation are more specifically described as:

Certain hot‐rolled wire rod of carbon steel and alloy steel of circular or approximately circular cross section, in coils, equal to or less than 25.5 mm in actual solid cross‐sectional diameter, originating in or exported from the People’s Republic of China, the Arab Republic of Egypt and the Socialist Republic of Vietnam (the “Subject Goods”).

Reasons for the CITT Determination

In its examination, the CITT identified several factors contributing to its finding of material injury to the domestic industry:

• A significant increase in imports of the Subject Goods relative to the domestic industry’s market share.
• An indication of price undercutting and price depression.
• Significant negative impact on the financial performance of the domestic industry due to the presence of the Subject Goods in the market.

Consequences of the Preliminary Determination

Following the CITT’s affirmative preliminary determination, all eyes are now on the CBSA which is conducting its own concurrent dumping investigation.  If the CBSA determines that dumping is taking place, it will impose provisional anti-dumping duties (“ADD”) on the Subject Goods.  Provisional duties are generally calculated and assessed based on a percentage of the export price of the subject goods imported into Canada during the provisional period. 

CBSA’s preliminary determination is expected by June 6, 2024.

Final Dumping Investigation and Injury Determination

Within 120 days of the CBSA’s preliminary determination, the CITT must issue a finding to finally conclude their inquiry, and issue reasons for their finding within another 15 days.

Concurrently, the CBSA will have to make a final determination within 90 days following its preliminary determination (which will include issuing normal values for cooperating producers), and issue reasons explaining the decision within another 15 days.

How to Get Involved

Given the potentially significant duties that may be imposed depending on the result of the inquiry, affected businesses should keep an eye on the proceedings and take steps as necessary to ensure their interests are represented.

Interested parties should have already responded to the CBSA’s questionnaire.  Those who have not yet filed a response to the CBSA should contact counsel as soon as possible to try and potentially “catch up” in the process.

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