U.S. opens investigations into Canadian steel

The U.S. Department of Commerce recently announced that it is launching an investigation to determine whether certain structural steel products manufactured in Canada, Mexico and China are being sold at below-market value. Another investigation also aims to determine whether the production of structural steel products from the countries mentioned above is unfairly subsidized by their respective governments. 

In the event that it is demonstrated that certain structural steel products from these countries are sold at a lower price or that their production is unfairly subsidized, taxes and penalties may be imposed. 

Both investigations were launched in response to requests from the American Institute of Steel Construction. Indeed, the Institute alleges that Canada and Mexico are dumping by selling some of their steel products at a price 30% below fair value, and that China is selling some of its steel products at a price 222% below fair value.

The preliminary results of these surveys are expected to be published on 21 March 2019, but the final results are expected towards the end of September 2019.

Claims of Canada and Mexico 

These investigations come at a time when Canada and Mexico are calling on the United States to abolish the surtaxes on certain Canadian and Mexican steel and aluminum products since June 1, 2018. Canada, like Mexico, mentioned that it would be difficult to consider ratifying the Canada-USA-Mexico Agreement (CUSMA) without the abolition of these surtaxes.