Vol. 149, No. 4 — February 25, 2015
SOR/2015-33 February 6, 2015
SPECIAL IMPORT MEASURES ACT
Regulations Amending the Special Import Measures Regulations
P.C. 2015-98 February 5, 2015
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
1. Sections 17.1 and 17.2 of the Special Import Measures Regulations (see footnote 1) are replaced by the following:
17.1 For the purposes of subsection 20(1) of the Act, the following customs territories are prescribed countries:
- (a) the People’s Republic of China;
- (b) the Socialist Republic of Vietnam; and
- (c) the Republic of Tajikistan.
COMING INTO FORCE
2. 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.)
In the context of World Trade Organization (WTO) 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 “antidumping” 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 WTO rules.
In Canada’s trade remedy system, countries prescribed under the Special Import Measures Regulations (the Regulations) may be treated as non-market economies. The Regulations provide sufficient flexibility in conducting trade remedy investigations to take into account whether a prescribed country is operating according to market economy conditions.
Tajikistan joined the WTO in 2013 under terms and conditions that allow for its treatment as a non-market economy in dumping investigations.
To continue to ensure that Canada’s trade remedy regime takes into account whether countries are operating according to market economy conditions.
The amendment adds Tajikistan as a prescribed country under subsection 17.3(1) of the Regulations.
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 to small business.
This amendment implements non-market economy provisions agreed to by Tajikistan in its Protocol of Accession to the WTO. Without this amendment, Canada’s trade remedy regime would not be able to take into account whether Tajikistan is 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.
International Trade Policy Division
Department of Finance