Canadian steel producers on guard against China threat

The leaders of two major Canadian steel industries have issued a statement warning of the existential threat their companies face if tariffs are not imposed.

Catherine Cobden, president and CEO of the Steel Producers Association of Canada, and Jean Simard, president and CEO of the Aluminum Association of Canada, issued a joint statement on the impact and continuing threat of Chinese overcapacity flooding the Canadian market and the recent consultation on possible policy responses to address Chinese overcapacity.

“As representatives of two major industries in Canada, which directly employ more than 31,000 Canadians and contribute more than $27 billion to the Canadian economy, we are taking the significant step of joining our voices to alert the Government of Canada to the clear and present danger that China’s state overcapacity has brought to our industries, our workers and the communities we support across the country.

Canada’s allies, including T-MEC partners the United States and Mexico, have recognized the devastating impacts of Chinese overcapacity and are taking steps to impose strict and timely tariffs to stem the flow of Chinese steel and aluminum into their markets. Through this consultation process, Canada has the opportunity to align itself with its North American partners to ensure it delivers on the trade partnerships forged over the past several decades.

“Failure to act exposes Canada to becoming the North American entry point for steel, aluminum. Preventing such a situation is part of a shared commitment with our trading partners, Mexico and the United States.” The Canadians assure us.

The communiqué proposes in conclusion to call on the Government of Canada to act quickly and adopt a holistic approach, including steel, aluminum and electric vehicles in a single tariff package fully aligned with its largest trading partner. “Relying solely on the use of traditional trade remedy measures or lengthy investigations would leave Canada far behind its trading partners and highly vulnerable.”

They add that the measures include “a full alignment of tariffs in the T-MEC for aluminum and steel, as part of a comprehensive package of measures, to counter China. For steel, tariffs of at least 25% should be imposed on all Chinese steel cast and imported into Canada. For aluminum, there should be full alignment in scope and amount with the final U.S. Section 301 tariffs on imports of Chinese aluminum products. “.

“We hope Canada recognizes the strategic importance of the steel and aluminum sectors and the workers and families our industries support. Taking this action would protect Canada from the very real threat of unfair trade to our economic prosperity and our North American trade relations.” says the Canadian Steel Producers Association.