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Canadian Government Rejected our Industry’s Call for Provisional Safeguard Measures to be Imposed on Steel Products.

The Canadian government rejected our industry’s call for provisional safeguard measures to be imposed on steel products.

CCA Press Release.

We continue to align with our provincial government and colleagues at Canadian Construction Association (CCA) to press the federal government for complete repeal of all US tariffs of Canadian steel and aluminum. This week, Prime Minister Trudeau confirmed he pressed the matter with President Trump in France over the weekend and expressed a desire to conclude the ongoing dispute before the G20 in Argentina in late November. Canadian ambassador to the United States David McNaughton has also affirmed that talks are to resume with the US Trade Representative this week.

The Federal government has taken two major steps in October:

Remission Order/Remission of Surtaxes
On October 11, Canada’s Department of Finance announced targeted relief from surtaxes collected on certain steel and aluminum imported from the US. Targeted relief is granted when a company can demonstrate extraordinary circumstances such as a lack of supply in the domestic market. Companies that have applied for and been granted relief can now import these goods without paying surtaxes. Some of this relief might be temporary, until such time as Canadian producers can meet domestic demand. Note that companies that want Duty Drawback or Duty Relief are under a significant administrative burden. Contact: 1-800-461-9999 (CBSA Border Information Service)

Duty relief programs:
Other than remission of surtaxes under the Order, relief from the surtaxes may be available under existing duty deferral programs administered by the CBSA.

Contact: Your local CBSA office

Export Development Canada:
Export Development Canada (EDC) has made up to $900 million available over the next two years in commercial financing and insurance to companies in the steel and aluminum sectors and related industries including SMEs.
Contact: 1-888-220-0047 or tradeadvisor-conseiller@edc.ca
Additional resources EDC – Commercial financing and insurance

Safeguards:
Also on October 11, the Canadian government announced provisional safeguard measures on seven steel products: heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted, steel, stainless steel wire, and wire rod. The government did this citing evidence that foreign steel products are being diverted into Canada. The safeguard is intended to curtail the diversion of foreign steel: beginning October 25, imports of these seven steel products will be subject to a 25% surtax in cases where the level of imports exceeds historical norms. These safeguards are under review and in place for 200 days.

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