March 10, 1999
(Executive Council)

Minister addresses federal decision to prevent future dumping by steel producers

Intergovernmental Affairs Minister Walter Noel is pleased that the Government of Canada has taken swift action to address the problem of steel imports being sold in Canada at cheap prices, referred to as "dumping," by Asian and European steel producers.

"I am pleased with Revenue Canada's decision to impose anti-dumping duties as high as 77 per cent on hot-rolled steel from four countries," said Minister Noel. "The province has been concerned about unfair trade practices regarding steel imports for some time. The Canadian, even North American steel market, has been hurt in the past year by steel imports being dumped in the market by Asian and European steel makers."

Canadian steel makers blame dumping for tumbling prices. The problem has cost industry millions of dollars in lost revenue. Imports accounted for 41.9 per cent of the total Canadian steel market last year.

"This is an important issue for the people of Newfoundland and Labrador, especially Labrador West. Iron ore mines at Labrador City and Wabush are significant to the local, provincial and national economies," said Minister Noel. "I wrote to both International Trade Minister Sergio Marchi and Revenue Minister Herb Dhaliwal to express provincial concerns. I am pleased to see that our concerns are being addressed."

On March 3, 1999, Revenue Canada took interim measures by setting high duties on future steel imports to prevent further dumping by steel importers. Steel importers will have to pay a levy of 43 per cent for hot-rolled steel from Romania, Russia and Slovakia, and a levy of 24 per cent for steel from France. The Canadian International Trade Tribunal is expected to make an official ruling by June 1, 1999. Revenue Canada is continuing investigations into other steel dumping complaints.

Media contact: Paula Dyke, Communications, (709) 729-0329.

1999 03 10                                  2:45 p.m.