Text of the new Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) Released

On February 20th, the text of the new Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) was released to the public. The text can be accessed online through the following link:  http://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cptpp-ptpgp/text-texte/index.aspx?lang=eng&utm_campaign=cptpp&utm_source=news&utm_medium=mailout_en.

The text of the CPTPP is very concise, consisting of only seven articles and one brief annex. However, Article 1 incorporates the consolidated text of the Trans-Pacific Partnership (TPP), by reference, and makes it part of the CPTPP (while specifying that the CPTPP shall prevail to the extent of any inconsistency). Article 2 operates to indefinitely suspend the TPP provisions listed in the CPTPP Annex. This list includes the TPP provisions that the parties agreed to suspend in paragraph 3 and Annex II of the Ministerial Statement issued in November 2017 (available online through the following link: http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/tpp-ptp/statement-declaration.aspx?lang=eng), and reflects additional negotiated outcomes that have since been finalized. The remaining provisions are administrative in nature, providing for the entry into force of the CPTPP, withdrawal, accession, review of the Agreement under certain circumstances (e.g., the entry into force of the TPP is imminent), and the authenticity and priority of the English, Spanish, and French texts.

The text of the new bilateral side-letters, which will provide the more substantive negotiated outcomes of the CPTPP, have not yet been released to the public, but “are expected to follow as soon as possible” (see Global Affairs Canada, “Minister Champagne welcomes release of full text of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership”, News Release (February 20, 2018), available online at https://www.canada.ca/en/global-affairs/news/2018/02/minister_champagnewelcomesreleaseoffulltextofthecomprehensiveand.html).

Tereposky & DeRose regularly provides advice on international trade agreements, including the NAFTA, the CETA, and the forthcoming CPTPP.  Should you have any questions regarding potential opportunities under these trade agreements or any other trade related issues, we are at your disposal.

Daniel Hohnstein
613.237.9005
dhohnstein@tradeisds.com

Jennifer Radford
613.237.9777
jradford@tradeisds.com

 

CBSA Statement of Reasons Issued for Preliminary Determination in Certain Copper Pipe Fittings

On February 9, 2018, the Canada Border Services Agency issues its Statement of Reasons in support of its January 25, 2018, preliminary determination that imports of certain copper pipe fittings originating in or exported from the Socialist Republic of Vietnam (Vietnam) are being sold in Canada at unfair and subsidized prices.

Hailiang (Vietnam) Metal Products Co Ltd (Hailiang VN) is the sole producer and exporter of the subject goods originating in or exported from Vietnam to Canada during the period of investigation.

The CBSA was unable to use Hailiang VN’s information to estimate normal values because it considered its response to the Dumping Request for Information substantially incomplete as Hailiang VN did not provide domestic sales, costing and financial information. Thus, the CBSA estimated the margin of dumping on the basis of facts available. This resulted in an estimated margin of dumping of 159% of the export price.

Both Hailiang VN and the Government of Vietnam provided a substantially complete response to their Subsidy Request for Information. The CBSA preliminarily determined that Hailiang VN benefitted from two subsidy programs during the subsidy Period of Investigation: (1) exemption of import tax on equipment and machinery imported to create fixed assets and (2) tax exemptions and reductions for investment in disadvantaged regions. The CBSA estimated the amount of subsidy for Hailiang VN at 4.7% of the export price.

Provisional duties are being applied to the subject goods released from customs on or after January 25, 2018. The total provisional duties payable by Hailiang VN are 163.7% of the export price (159% estimated margin of dumping and 4.7% amount of subsidy).

The inquiry continues and the CBSA will issue its final determination by April 25, 2018, with a Statement of Reasons to follow by May 10, 2018. The Canadian International Trade Tribunal (CITT) preliminarily determined, on January 11, 2018, that the evidence adduced in the Complaint discloses a reasonable indication that imports are harming the domestic industry. A hearing will be held at the CITT on April 23, 2018, and the CITT is expected to issue its finding on the question of injury by May 25, 2018.

Tereposky & DeRose regularly provides advice on Canadian anti-dumping and countervailing matters.  Should you have any questions regarding this matter or anti-dumping and countervailing issues more generally, we are at your disposal.

Vincent DeRose
613.237.8862
vderose@tradeisds.com

Stephanie Desjardins
613.237.0483
sdesjardins@tradeisds.com

 

 

CBSA Statement of Reasons Issued for Expiry Review in Certain Steel Piling Pipe

On February 9, 2018, the Canada Border Services Agency (CBSA) issued its Statement of Reasons in support of its January 25, 2018, expiry review determination that the expiry of the finding will likely result in the continuation or resumption of dumping and subsidizing of certain steel piling pipe originating in or exported from the People’s Republic of China (China).

With regard to dumping, the CBSA determined that the expiry of the finding is likely to result in the continuation or resumption of dumping into Canada of certain steel piling pipe originating in or exported from China. The CBSA relied on the following information on the record to conduct its analysis:

  • Several anti-dumping measures have been imposed by Canada and other jurisdictions on closely-related steel products from China;
  • The inability of exporters to sell steel piling pipe in Canada at non-dumped prices;
  • The anticipated increase in demand in Canada for steel piling pipe;
  • The overcapacity of steel piling pipe in China; and
  • The continued interest of Chinese exporters in the Canadian market.

With regard to subsidization, the CBSA determined that the expiry of the findings is likely to result in the continuation or resumption of subsidizing of steel piling pipe originating in or exported from China. The CBSA relied on the following information on the record to conduct its analysis:

  • the availability of subsidy programs for steel piling pipe exporters in China;
  • the Government of China’s continued involvement in the steel sector; and
  • closely related pipe products from China are also subject to countervailing measures in Canada and in other jurisdictions.

On January 26, 2018, the Canadian International Trade Tribunal (CITT) commenced its inquiry to determine whether the expiry of the finding with respect to the dumping and subsidizing of the goods from China is likely to result in injury to the domestic industry. A hearing will be held at the CITT on May 7, 2018, and the CITT is expected to issue its decision no later than July 4, 2018.

Tereposky & DeRose regularly provides advice on Canadian anti-dumping and countervailing matters.  Should you have any questions regarding this matter or anti-dumping and countervailing issues more generally, we are at your disposal.

Vincent DeRose
613.237.8862
vderose@tradeisds.com

Stephanie Desjardins
613.237.0483
sdesjardins@tradeisds.com