2 Serge Frechette

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 : 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


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 Key Characteristics of the Canada’s Trade Remedy System


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? The CITT’s Role with Respect to Trade Remedies


AD/CVA Shared Responsibility : AD/CV A Shared Responsibility


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 Managing the CITT Processes


Canadian Anti-dumping and Countervailing Measures 1995-2005 : Canadian Anti-dumping and Countervailing Measures 1995-2005


Canadian TrendsAnti-dumping & Countervailing Measures : Canadian Trends Anti-dumping & Countervailing Measures


Global Trends Anti-dumping Measures (WTO Members) : Global Trends Anti-dumping Measures (WTO Members)


Slide10 : Canadian Anti-dumping Findings/Orders in Place by Sector


Slide11 : Global Anti-dumping Measures in Place by Sector (WTO Members)


Canadian Safeguard Cases Since 1993 - 2006 : Canadian Safeguard Cases Since 1993 - 2006


Global Use of Safeguard Measures(WTO Members) : Global Use of Safeguard Measures (WTO Members)


Why the Downward Trend? : 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)


Other External Factors : 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


Canadian Industries are Asking for Change : 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


WHERE ARE WE? : 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?


Slide18 : THANK YOU