Background

The CBSA initiated its original investigation of the Subject Goods on September 13, 2019, in response to a complaint from an Alberta manufacturer of like goods.  On October 1, 2019, the Canadian International Trade Tribunal (“CITT“) began its parallel injury inquiry.

After a preliminary determination of dumping by the CBSA on December 30, 2019, three related exporters from Argentina, Brazil and Mexico (the “Exporters”) submitted price undertaking proposals which, after several revisions, were accepted by the CBSA on March 20, 2020. 

Price undertakings are written commitments by exporters to adhere to specific conditions in exporting goods to Canada at prices that eliminate either the dumping or the injury caused by the dumping in Canada.  The Exporters agreed to increase their minimum selling prices to a level equal to the average selling price in Canada in May/June 2019 plus 16.5%.

What is an Undertakings Review

Undertakings reviews are conducted by the CBSA to review any prior undertakings made by parties to an investigation with respect to the dumping or subsidizing of goods.  Undertakings may suspend investigations if they eliminate the margin of dumping or the subsidy on goods or any injury or threat thereof caused by the dumping or subsidizing under the Special Import Measures Act(“SIMA”).  They generally occur every five years following the original acceptance of undertakings or subsequent renewal.

Undertakings reviews are designed to allow the CBSA to determine whether the prior undertakings remain necessary. 

Decision

The CBSA determined that the undertakings should be renewed for a period of not more than 5 years. 

According to its statement of reasons, there was no evidence presented to support that the undertakings were violated or that there was any new information or change in circumstance that would have altered the decision to accept the undertaking in the first place, and the price undertakings had not resulted in material restrictions in competition.  Moreover, both the Canadian producer, and the exporters did not oppose the renewal of the undertakings in their current format. Accordingly, the CBSA concluded that the undertakings continued to serve the purpose for which they were intended and met the test for renewal.

Next Steps

Following this renewal, the CBSA will continue to suspend the collection of provisional duties with respect to the Subject Goods and suspend its investigation of alleged dumping for as long as the undertakings are in force.

The Undertakings Review of Certain sucker rods from Argentina, Brazil and Mexico has ended.  Undertakings have been renewed for another 5 years!

For assistance with undertakings or the SIMA, click here.

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