The Canada Border Services Agency (CBSA) has initiated investigations into the alleged dumping of steel strapping by China, South Korea, Türkiye, and Vietnam, and the alleged subsidization of steel strapping from China. The move comes in response to a formal complaint filed by JEM Strapping Systems Inc. (JEM), the sole Canadian producer of steel strapping, located in Brantford, Ontario.

The CBSA will delve into allegations that these imported steel strapping products are being sold in Canada at unfair prices, undercutting domestic prices and harming Canadian industry. Simultaneously, the investigation will examine whether the steel strapping originating from China is benefiting from government subsidies, further distorting fair market competition.

JEM Strapping Systems Inc. claims that the surge in the volume of dumped and subsidized imports has caused significant material injury to their business. This alleged injury manifests in several forms, including a loss of market share, price undercutting by foreign competitors, a general depression of prices within the Canadian market, lost sales, reduced net income and overall profitability, and a decrease in employment.

Steel strapping is a strong, durable method of securing loads and packages using bands made of steel. It's known for its high strength and ability to withstand heavy loads, making it ideal for industries like shipping, construction, and manufacturing.

This dual investigation will proceed on two parallel tracks, involving both the CBSA and the Canadian International Trade Tribunal (CITT). The CITT will undertake a preliminary inquiry to assess whether the imported steel strapping is indeed causing harm to Canadian producers. Their findings are expected by July 11, 2025.

Concurrently, the CBSA will conduct its own thorough investigation to determine if the imported steel strapping is being sold at unfairly low prices (dumping) and/or benefiting from subsidies. The agency is slated to release its preliminary decision on these matters by August 11, 2025.

Steel strapping originates from or is exported by China, South Korea, Türkiye, and Vietnam. The Canadian market for imported steel strapping is estimated to be approximately $24 million annually.

A comprehensive statement of reasons, providing further details about the initiated investigations, will be made available on the CBSA’s official website within 15 days from today’s announcement. Stakeholders and interested parties are encouraged to consult this document for additional information as the investigations progress. This move underscores the CBSA's commitment to protecting Canadian industries from unfair trade practices and ensuring a competitive domestic market.