Federal Court of Appeal Upholds Canadian International Trade Tribunal’s Finding that Dry Wheat Pasta from Turkey has Caused Material Injury to Canadian Pasta Producers
Ruling from the Bench earlier today (September 11, 2019), the Federal Court of Appeal dismissed the application for judicial review of the Canadian International Trade Tribunal’s finding concerning dumped and subsidized imports of dry wheat pasta from Turkey (see Inquiry No. NQ-2018-001).
The application (file no. A-261-18) was brought before the Court by exporters and importers of dry wheat pasta from Turkey, including AGT Food and Ingredients, Durum Gida Sanayi Ve Ticaret A.S., and the Mediterranean Food Exporters Association (the “Applicants”). They challenged the Tribunal’s finding that unfairly priced imports from Turkey have caused material injury to Canadian producers of dry wheat pasta. Their primary argument was that the Tribunal had improperly focused its analysis on the effects of the dumped and subsidized goods imported from Turkey and not on the effects of the dumping and the subsidizing of the goods (i.e., the amount of the dumping and subsidization) as a separate matter.
Successfully defending the Tribunal’s decision was the Canadian Pasta Manufacturers Association (CPMA), whose members include Primo Foods Inc., Italpasta Limited, and Grisspasta Products Ltd.
In brief reasons that were read by Justice Webb from the Bench, the Court unanimously rejected the Applicants’ arguments and dismissed the case. The Court found that the standard of review was reasonableness, and deference to the Tribunal’s reasoning was warranted on account of its specialized expertise in the subject matter. Considering both the relevant provisions of Canadian legislation and Canada’s obligations under World Trade Organization Agreements, the Court determined that an analysis of the effects of the “dumped and subsidized goods” was equivalent to an analysis of the effect of the “dumping and subsidizing of the goods” for the purposes of determining whether unfairly priced imports have caused injury to Canada’s domestic industry. The Court did not agree with the distinction that the Applicants attempted to draw and saw no reason to disturb either the Tribunal’s reasoning or its finding.
As a result, the Tribunal’s finding that dumped and subsidized imports of dry wheat pasta from Turkey have caused material injury to Canadian producers continues to stand, and the anti-dumping and countervailing measures continue to apply (see measures in force concerning imports of dry wheat pasta from Turkey).
Tereposky & DeRose regularly provides advice on Canadian trade remedy matters, including anti-dumping and countervailing duty investigations and safeguard actions. Should you have any questions regarding these amendments, we are at your disposal.