Trade and Manufacturing Monitor News and insight from our international trade practice group Fri, 01 Mar 2024 00:16:20 -0500 60 hourly 1 Canada to Impose Safeguard Measures on Steel Imports Wed, 17 Oct 2018 14:51:18 -0400 This week the Government of Canada announced its intent to impose restrictions on imports of seven classes of steel products to mitigate harm caused by “the diversion of foreign steel products into Canada.” See the News Release dated Oct. 11, 2018, and Notice of Commencement of Safeguard Inquiry.

The seven classes include wire rod; stainless steel wire; hot-rolled sheet; heavy plate; energy tubular; pre-painted steel; and concrete reinforcing bar.

These “safeguard measures” were reportedly prompted by complaints from Canada’s steel industry that U.S. Section 232 tariffs on steel and aluminum have resulted in shipments of cheap steel to be diverted to Canada from the U.S., and follows the country’s countermeasures imposed on July 1st applying tariffs on over $12 billion worth of U.S. goods in response to those tariffs.

Notably, the safeguards do not apply to goods originating in and imported from the U.S., Chile and Israel. However imports of energy tubular and wire rod from Mexico “are within the scope of the Tribunal’s inquiry.”

These safeguard measures are provisional, remaining in place for 200 days pending the safeguards inquiry conducted by the Canadian International Trade Tribunal (CITT). By April 2019, the CITT must provide recommendations on whether the safeguard should be continued for the longer term. While parties can participate in the CITT inquiry, they are “directed not to make submissions to the Tribunal on classes of goods or to request exclusions from safeguard measures for specific products, producers, exporters, regions, etc., as these matters are outside the scope of the inquiry.”

Commerce Department Completes Section 232 Probe Into Steel Imports But Stays Mum on the Findings Fri, 12 Jan 2018 11:57:08 -0500 Yesterday evening the Commerce Department sent to the White House its findings in the Section 232 national security investigation on steel imports. The much anticipated report was originally due to be issued last year, but faced several delays. The President now has the authority to decide whether to accept or reject the Commerce Department’s findings within the next 90 days. If they are accepted, the administration could then decide to impose quotas, tariffs, or a combination of both (a "tariff-rate quota") on imports that are found to threaten U.S. national security.

Neither the White House nor the Commerce Department has announced the contents of the report and whether the Commerce Department concluded that steel imports (or a particular subset of steel imports) pose a threat to national security. The Commerce Department issued a press release stating that the Secretary reported the Department's findings to the President. After the President has announced a decision, the Department intends to publish the public findings of the investigation.