ARCHIVED — Vol. 147, No. 10 — May 8, 2013

Registration

SOR/2013-81 April 26, 2013

SPECIAL IMPORT MEASURES ACT

Regulations Amending the Special Import Measures Regulations

P.C. 2013-427 April 25, 2013

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 20(1) (see footnote a) and paragraph 97(1)(a) of the Special Import Measures Act (see footnote b), makes the annexed Regulations Amending the Special Import Measures Regulations.

REGULATIONS AMENDING THE SPECIAL IMPORT
MEASURES REGULATIONS

AMENDMENTS

1. Subsection 17.1(2) of the Special Import Measures Regulations (see footnote 1) is repealed.

2. Subsection 17.2(2) of the Regulations is repealed.

COMING INTO FORCE

3. These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue

In the context of World Trade Organization trade rules, dumping occurs when goods are sold to importers at prices that are lower than the selling price of comparable goods in the country of export, or when goods are sold to importers at below their cost of production. If it is found that dumped imports are causing injury to domestic producers’ operations, the amount of dumping on imported goods may be offset by the application of an anti-dumping duty. The duties are meant to offset the price advantage caused by dumping and to give domestic producers an opportunity to compete fairly with the imported goods.

For exports from a market economy, these duties are normally calculated based on the exporter’s home market prices and costs. In non-market economy situations, anti-dumping duties may be calculated based on substitute prices and costs from a third country with an undistorted market. The ability to treat certain countries as non-market economies in dumping investigations is allowed for under World Trade Organization rules.

In Canada, the Special Import Measures Act provides sufficient flexibility in conducting trade remedy investigations to take into account whether a prescribed country under the Special Import Measures Regulations (the Regulations) is operating according to market economy conditions. China and Vietnam are the only prescribed countries under the Regulations. When these provisions were enacted, automatic expiry dates were included (December 11, 2016, and December 31, 2018, for China and Vietnam respectively). These expiry dates have been removed to ensure that Canada’s trade remedy system can continue to take into account whether these countries are operating according to market economy conditions.

Objective

To continue to ensure that Canada’s trade remedy regime takes into account whether prescribed countries under the Regulations are operating according to market economy conditions.

Description

The amendments remove the automatic expiry dates for prescribed countries under subsections 17.1(2) and 17.2(2) of the Regulations.

“One-for-One” Rule

The “One-for-One” Rule does not apply, as there is no change in administrative costs to business.

Small business lens

The small business lens does not apply, as there are no costs on small business.

Rationale

Without this amendment, prescribed countries under the Regulations would expire automatically and Canada’s trade remedy regime would potentially not be able to take into account whether prescribed countries are operating according to market economy conditions. Consequently, there would be a risk of unfairly traded imports entering Canada and causing injury to domestic producers’ operations.

Implementation, enforcement and service standards

Canada’s trade remedy system is administered by the Canada Border Services Agency and the Canadian International Trade Tribunal. No changes are needed to the procedures and processes of these organizations.

Contact

Justin Brown
Senior Economist 
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Telephone: 613-996-0620
Email: Justin.Brown@fin.gc.ca