The Canadian International Trade Tribunal (CITT) has announced that the imposition of anti-dumping duties on gypsum board imported into Western Canada from the United States causes significant harm to Western Canadian businesses and consumers.
The decision was applauded by the Western Canada Alliance of Wall and Ceiling Contractors, who has argued that the duties are causing significant harm to the construction industry and should be removed.
“We thank the Tribunal for their extensive study into the impact of anti-dumping duties on the construction sector across Western Canada and on the Canadian economy,” said Neal Pollock, of TDL Drywall Inc., Calgary and a member of the Alliance who, along with other members, participated in Tribunal proceedings.
The Canadian Border Services Agency (CBSA) in September 2016 imposed a controversial anti-dumping tariff of up to 276 per cent on U.S. gypsum board, or drywall, imported for use in B.C., Alberta, Saskatchewan, Manitoba, Yukon and the Northwest Territories, following a complaint from CertainTeed Gypsum Canada Inc.
The CITT findings reflect Alliance testimony before the Tribunal late last year demonstrating the adverse impact of the sharp and unexpected price hikes caused by the imposition of preliminary anti-dumping duties (“PDs”) on contracts, letters of intent (LOIs) and bids based on pre-PD pricing.
The recommendations presented by the Tribunal go a significant way to alleviating the harm found by the Tribunal. The Alliance is supportive of the Tribunal’s recommendation for a refund mechanism to reimburse purchasers for the higher cost of gypsum board incurred during the provisional period. The recommendation that final duties be temporary eliminated for six months is helpful, but not long enough to allow contractors to perform their fixed price contracts in place prior to the imposition of preliminary duties on September 6, 2016. The Alliance will be seeking a longer period of temporary elimination without a volume cap. The Alliance welcomes the introduction of a reduced rate of final duties which is absolutely necessary to maintain competition in the Western Canadian market.
“We look forward to reviewing the Tribunal’s reasons and we strongly encourage the government to immediately implement the recommendations,” said Pollock. “To maintain our industry’s economic viability, Western Canada’s construction industry must be predictable and stable. We cannot be hit by significant overnight product cost increases that will put our livelihoods at risk.”
