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Managing Canada's Trade Remedies System

Managing Canada's Trade Remedies System. Serge Fréchette Vice Chairperson Canadian International Trade Tribunal. June 2007. Canadian International Trade Tribunal’s Mandate. Quasi-judicial role: Unfair trade cases: Anti-Dumping & Subsidy Safeguard cases: Global and China

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Managing Canada's Trade Remedies System

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  1. Managing Canada's Trade Remedies System Serge FréchetteVice ChairpersonCanadian International Trade Tribunal June 2007

  2. Canadian International Trade Tribunal’s Mandate • Quasi-judicial role: • Unfair trade cases: Anti-Dumping & Subsidy • Safeguard cases: Global and China • Bid challenges: Procurement • Appeals • Advisory role: • Tariff and general economic inquiries • Standing tariff references: Textile Inputs

  3. Key Characteristics of the Canada’s Trade Remedy System • Within framework set by domestic law • Consistent with international trade obligations (WTO and NAFTA) • Independent • Focus on procedural fairness • Timely • Protects Confidential Information • Accessible and Transparent

  4. The CITT’s Role with Respect to Trade Remedies • Anti-Dumping and Countervail • Bifurcated system: • Canada Border Service Agency (CBSA): Is there dumping/subsidy? • CITT: Does the dumping/subsidy cause injury? • If injury, AD/CV duty is imposed automatically (administered by CBSA) • Safeguards • CITT determines whether there has been an increased imports and injury. • If injury, Government must ask CITT to recommend appropriate remedy. • Government makes decision whether to impose a remedy?

  5. Canadian International Trade Tribunal (Tribunal) Canada Border Services Agency (CBSA) CBSA & Tribunal Jointly Responsible for SIMA Protection Investigates Dumping/ Subsidizing Inquiries into Injury to Canadian producers Dumping/Subsidy/Injury Confirmed CBSA Enforces SIMA Findings Imposes Duties AD/CVA Shared Responsibility

  6. Managing the CITT Processes • Mix of adversarial and "inquiry" elements • Adversarial (Parties advance their interests): • Counsel, cross-examination, argument etc. • Inquiry (Tribunal seeks information in the public interest) • Staff role in information collection and analysis • Panel role in information gathering and hearing process Court-like processes: • Official case records and "court registry" function • Parties (adversarial process; exchange of submissions) • Hearings (witnesses, transcripts etc.) • Findings and Statements of Reasons Differences from normal court processes: • Tribunal preparation for the hearing • Aim for more streamlined hearings/court of easy access • More flexibility in procedure and rules of evidence • Tribunal role at the hearing

  7. Canadian Anti-dumping and Countervailing Measures 1995-2005

  8. Canadian TrendsAnti-dumping & Countervailing Measures

  9. Global Trends Anti-dumping Measures (WTO Members)

  10. Canadian Anti-dumping Findings/Orders in Place by Sector

  11. Global Anti-dumping Measures in Place by Sector (WTO Members)

  12. Canadian Safeguard Cases Since 1993 - 2006

  13. Global Use of Safeguard Measures(WTO Members)

  14. Why the Downward Trend? • Business Cycles: Relatively strong economies • The changing landscape: manufacturers focusing on value added, higher value, niche markets • Manufacturers shifting production to lower cost countries • Globalization & Market Integration: - Parent companies now in other countries;- manufacturers are also importers • Industries have now adapted to the overall lower tariff rates • Change in dumping calculation methodology (CBSA discontinued “zeroing”, as a result margins are lower.) • Safeguard Measures: - Little confidence in the regime; - Political / policy considerations (in certain jurisdictions)

  15. Other External Factors • Tariffs are very low and approaching zero for many products. • The Canadian economy still strong, but the manufacturing sector in Canada is showing weakness. • The steel industry, the largest traditional users of trade remedies going through period of consolidation. • The CBSA’s focus on SMEs and non-traditional users. • Recent governments have put more focus on market forces to provide for necessary adjustments than in government intervention. • The Doha round of WTO negotiations has been suspended. The Government is focussing on regional trade agreements

  16. Canadian Industries are Asking for Change • More timely application of unfair trade remedies • Government-initiated cases: Enhanced import monitoring to support a preventative approach to dumped or subsidized imports • Retroactive duties to the date of initiation of a case • Recognition of the cumulative injury done to the industry when dealing with the similar products from the same country • Government leadership in cooperation with other countries to pursue more effective trade remedies internationally

  17. WHERE ARE WE? • There appears to be consensus that with the increasing volume of world trade and free trade areas there exists a definite need for a “Trade Remedy System”. • Is the current structure of the Trade Remedy system responsive to today’s needs? • Is it a question of what “TYPE” of Trade Remedy System” is required to address the needs and meet the current challenges of industries that participate in today’s global trading environment?

  18. THANK YOU

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