Trade Cases
USW Opposes Lifting of Canadian Safeguards on Steel Imports
Written by Sandy Williams
April 28, 2019
Canada will keep safeguard tariffs on imports of heavy plate and stainless steel wire—only two products of the original seven provisional safeguards implemented in October. In April, the Canadian International Trade Tribunal found that imports of hot-rolled steel, pre-painted steel, energy tubular products, rebar and wire rod did not pose a threat of “serious injury” to the domestic industry and recommended that the trade measures be removed on those products.
The Canadian United Steelworkers strenuously oppose terminating the five provisional safeguards.
“This government must not abandon Canadian workers and communities in their hour of need,” said USW National Director Ken Neumann. “Thousands of jobs across the country are now at risk due to the Trudeau government’s failure to maintain safeguards protecting Canada’s steel sector from a surge in foreign imports.”
Neumann says the safeguards were effective in supporting Canada’s steel sector during the last six months and noted that countries around the world have taken similar measures to protect their markets and workers.
“Even with the safeguards in place, market conditions in Canada have deteriorated and approximately 700 of our members have already been laid off,” he said.
The government is launching a 30-day consultation period with businesses to determine whether other protections are required. Neumann says that although the USW will participate, it may be “too little, too late” to avoid a surge in foreign imports.
Removal of the provisional safeguards is also thought to weaken Canada’s position in negotiating the lifting of the Section 232 tariffs imposed on Canadian steel by the U.S.
“We’ve been working tirelessly on both sides of the border to resolve the tariffs issue, but the U.S. administration remains concerned that Canada would appear to be either unwilling or unable to protect its steel market,” said Leo W. Gerard, USW International President.
Removal of the safeguards will also deter investment by Canada’s steel producers, said Neumann.
“Even with the government’s support for investment in the industry, steel companies are not going to invest in their Canadian facilities if Canada does not protect its market,” he said.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Commerce increases import duties on Korean galv, plate
The Commerce Department is raising the import duties on imports of corrosion-resistant sheet and cut-to-length plate from Korea.
Leibowitz on trade: Why is protectionism so popular?
The world has had a few shocks recently. The CEO of a major health insurance company was gunned down in Manhattan. The 50-year Assad dynasty in Syria was pushed out less than two weeks after rebels started an offensive. And President-elect Trump is promising tariffs on everything a month before he takes office. But one shock has been taking place for a lot longer than the last few weeks. The 70-year consensus on trade hasn’t just been challenged. It’s been repudiated.
Ternium chief say Mexico tariffs ‘irrational’
Vedoya said the proposed tariffs are "an irrational measure that would harm both their own industry and ours."
Price on Trade: Trump tariffs are no negotiating tool – and could come at lightning speed
We focused on trade actions the second Trump administration might take in a prior column. Since then, we have learned more about the individuals who will be leading these efforts. Recent nominations reinforce the president-elect’s statements that tariffs will feature prominently in the second administration and that trade actions will be unveiled at lightning speed.