The Canada Border Services Agency (CBSA) announced yesterday the initiation of a significant investigation into the alleged dumping of certain carbon and alloy steel wire originating from eleven countries. The probe aims to determine whether these goods from the People's Republic of China, Taiwan, India, Italy, Malaysia, Portugal, Spain, Thailand, Türkiye, and Vietnam are being sold in Canada at unfairly low prices, potentially harming domestic industries.

The investigation was triggered by a formal complaint jointly filed by two major Canadian producers of steel wire: Sivaco Wire Group 2004, L.P., located in Marieville, Quebec, and ArcelorMittal Long Products Canada G.P., based in Contrecoeur, Quebec.

The complainants assert that a surge in the volume of dumped imports has caused them significant material injury. This alleged injury manifests in various forms, including price undercutting by foreign competitors, a general depression of prices in the Canadian market, lost sales and a subsequent decrease in market share, reduced net income and overall profitability, a decline in the utilization of their production capacity, an inability to secure capital for necessary investments, and ultimately, a reduction in employment opportunities within their operations.

The CBSA emphasized that the practice of dumping undermines fair competition and can have detrimental effects on Canadian businesses. The agency is now tasked with thoroughly investigating these allegations to ascertain their validity.

This investigation will proceed in tandem with a preliminary inquiry conducted by the Canadian International Trade Tribunal (CITT). The CITT will focus on evaluating whether the imported steel wire is indeed causing harm to Canadian producers. They are mandated to issue their preliminary findings on this matter by June 20, 2025.

Meanwhile, the CBSA will concentrate its efforts on determining whether the subject goods are being sold at unfair prices within the Canadian market. The agency has set a deadline of July 21, 2025, to release its preliminary decision on the dumping allegations.

The CBSA highlighted the importance of Canada’s Trade remedy system in ensuring a level playing field for domestic industries. Currently, there are 158 special import measures in force across Canada, encompassing a wide array of industrial and consumer products. These measures are credited with directly safeguarding approximately 31,000 Canadian jobs and supporting $11.6 billion in Canadian production.

According to the CBSA, the total Canadian market for certain carbon and alloy steel wire is estimated to be around $463 million annually.