Brampton firms accuse Chinese of flooding market with cheap aluminum

28/08/2008 12:00 - 831 Views

BRAMPTON - Two Brampton aluminum firms are among several companies filing complaints with the Canada Border Services Agency (CBSA) over China's alleged involvement in the dumping and subsidizing of cheap products flowing into this country.

The CBSA announced it has launched investigations into claims that certain aluminum extrusions originating in, or exported from, China are being sold to importers in Canada at very low prices.

Likewise complainants, among them Brampton's Almag Aluminum and Can Art Aluminum Extrusion, charge goods imported into Canada are benefiting from subsidies provided by the Chinese government.

"The complainants allege that the dumping and subsidizing of the goods in question are harming Canadian production by causing price erosion and suppression; lost sales, revenues and employment; and reduced market share, profitability, production and capacity utilization," read a statement issued by the CBSA.

As a result of the complaints, the Canadian International Trade Tribunal will begin a preliminary inquiry to determine whether the imports are harming Canadian producers.

The tribunal will issue a decision by Oct. 17.

And while the Tribunal is examining the question of injury, the CBSA will investigate whether the imports are being dumped and/or subsidized and will make a decision by Nov. 17.

"If there is a large increase in harmful imports and the Tribunal decides that the retroactive application of anti-dumping or countervailing duty is justified, duty could be levied on the goods brought into Canada as of today," the CBSA statement continued.

Dumping occurs when goods are sold to importers in Canada at prices that are less than the selling prices in the exporter's domestic market or at unprofitable prices.

Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The CBSA is responsible for the administration of the Special Import Measures Act, which "protects Canadian producers from the damaging effects of such unfair trade."

A copy of the Statement of Reasons, which provides more details about these investigations, will be made available on the CBSA's Web site at www.cbsa.gc.ca/sima-lmsi within 15 days.

By PETER CRISCIONE

The Brampton Guardian

Thursday August 21 2008

Source: www.northpeel.com