Canadian producers and importers may want to provide feedback on Canada's trade remedy system in response to a new Finance consultation. Finance recently announced details of potential legislative and regulatory amendments to the trade remedy system, including to improve access for workers and small and medium-sized enterprises (SME). As part of this process, Finance is asking for public feedback from system users and those affected by trade remedy duties by September 26, 2021.

Public consultations related to potential amendments to Canada's trade remedy system were first announced in the 2021 federal budget. Finance says that public input will assist the government in developing potential amendments to the Special Import Measures Act (SIMA), the Canadian International Trade Tribunal Act (CITT Act) and related regulations.

Background

Canadian producers can use the trade remedy system to request an investigation against specific countries whose exporters are allegedly selling dumped or subsidized goods into the Canadian market. Where dumping or unfair subsidization has resulted in injury or threat of injury to an industry in Canada, anti-dumping or countervailing duties can be applied. In addition, the government can also impose safeguard measures where a surge in imports has caused, or threatens to cause, serious injury to the domestic industry.

Potential changes

Finance is accepting feedback on potential measures to:

  • Increase the participation and consideration of unionized workers in trade remedy proceedings
  • Clarify the applicable standard to initiate anti-circumvention investigations
  • Change the treatment of massive importations, including data collection, the applicable standard, and trade remedy complaint notification timeframes
  • Streamline the expiry review process by automatically initiating expiry reviews before a trade remedy order expires
  • Improve access for SMEs to Canada's trade remedy system.

In particular, Finance says it intends to consider how changes in these areas may affect:

  • The system's effectiveness in addressing injury caused by dumped and subsidized imports
  • The overall balance of stakeholder interests, including those of producers, downstream users, and consumers
  • The system's inclusiveness and accessibility
  • Transparency and procedural fairness
  • The administrative burden for interested parties and investigating authorities
  • Compliance with Canada's World Trade Organization obligations.

For more information, contact your KPMG adviser.

Information is current to August 9, 2021. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500