Canada Announces New Measures To Protect And Strengthen Canada’s Steel Industry

As CTV News reported last week, Canadian Prime Minister Mark Carney and his government plan to impose new measures that aim to bolster the country’s steel industry and prevent steel dumping in the Canadian market. More specifically, the government plans to “restrict and reduce foreign steel imports” while increasing tariffs on steel products imported from non-U.S. countries containing steel melted and poured in China.

Under the heading of restricting and reducing foreign steel imports, Prime Minister Carney pledged to:

• Review tariff rate quotas (TRQs) for non-free trade agreement (FTA) partners within 30 days;
• Tighten the TRQ levels for steel products from non-FTA countries from 100 percent to 50 percent of 2024 volumes and apply a 50 percent tariff above those levels;
• For non-U.S. partners with which Canada has an FTA, introduce a TRQ level for steel products at 100 percent of 2024 volumes and apply a 50 percent tariff on steel imports above those levels;
• Retain existing arrangements with the United States and Mexico;
• Review the country’s remission framework to favor the use of Canadian steel and aluminum in Canadian-made products;
• Reassess existing trade arrangements with respect to steel; and
• Implement additional tariffs of 25 percent on steel imports from all non-U.S. countries containing steel melted and poured in China before the end of July.

Under the heading of investing in Canadian steel workers and production, Prime Minister Carney pledge to:

• Build on the enhancements to Employment Insurance (EI) and the EI Work-sharing, the government is investing $70 million in Labor Market Development Agreements to provide training and income supports for up to 10,000 affected steel workers;
• Through reskilling investments and increased worker supports, ensure workers have the skills and support they need to meet the future needs of the industry;
• To strengthen and ready the workforce to build a more resilient steel industry, provide $1 billion to the Strategic Innovation Fund to help steel companies advance projects that will increase their competitiveness within the domestic market, catalyze production of steel products not currently produced in Canada, and create jobs in sectors such as defense;
• Enhance the Business Development Bank of Canada Pivot to Grow initiative, which provides support to eligible steel small and medium-sized enterprises that are facing liquidity challenges;
• Provide $150 million as part of the government’s Regional Tariff Response Initiative through the Regional Development Agencies; and
• Update the Large Enterprise Tariff Loan to expand eligibility and provide lower cost financing to firms in the steel industry.

Find more information at this link.