Background: Consultation on measures to strengthen and improve access to Canada’s trade remedy system

Background

Under Canada's trade remedy system, Canadian producers can request the initiation of an investigation against specific countries whose exporters are alleged to be selling dumped or subsidized goods into the Canadian market. Where an investigation shows that dumping or unfair subsidization has occurred and resulted in injury or threat of injury to the domestic industry or retardation of the establishment of an industry in Canada, anti-dumping or countervailing duties can be applied.

In addition, the Canadian government can also impose safeguard measures if an inquiry finds that a surge in imports has caused, or threatens to cause, serious injury to the domestic industry. Unlike anti-dumping and countervailing duties, safeguards are intended to be applied on a global basis and are intended to address imports that are not alleged to be dumped or subsidized.

The Department of Finance Canada holds policy and legislative responsibility for Canada's trade remedy system. The bifurcated system is jointly administered by the Canada Border Services Agency (CBSA), which is responsible for subsidy and dumping investigations and for the administration of measures in force, and the Canadian International Trade Tribunal (CITT), which conducts injury inquiries and safeguard inquiries.

SIMA and the CITT Act implement Canada's rights and obligations under the World Trade Organization's (WTO) Anti-Dumping Agreement (ADA), Agreement on Subsidies and Countervailing Measures (ASCM), and Agreement on Safeguards. These agreements set out the multilateral rules governing the use of anti-dumping, countervailing, and safeguard measures. All investigations are conducted in an independent, non-political manner, in accordance with WTO rules.

In comparison, the U.S. maintains a similar bifurcated trade remedy system whereby the Department of Commerce is responsible for subsidy and dumping investigations and the International Trade Commission conducts injury and safeguard investigations. The U.S. Customs and Border Protection is also responsible for the enforcement of trade remedy duties. In recent years, Canada has implemented legislative and regulatory amendments to strengthen its trade remedy system, including by aligning with certain U.S. practices.