OTTAWA—Canada said on Aug. 14 it will consider a safeguard action on seven steel products to protect domestic producers from imports since the United States imposed tariffs against its major trade partner in March.
Finance Minister Bill Morneau said a 15-day consultation period will be used to look at the harm or threat of harm to seven steel categories, including steel plate, rebar, energy tubular product, hot rolled sheet, pre-painted steel, stainless steel wire and wire rod.
“Our government believes the tariffs levied by the United States represent an exceptional circumstance, and that’s why provisional safeguards are being considered,” Morneau told a news conference at steelmaker ArcelorMittal’s Dofasco plant in Hamilton, Ontario.
“If evidence gathered during our consultations points to harm or threat of harm to Canadian producers, we will apply provisional safeguards in an expeditious manner and refer the issue to the Canadian International Trade Tribunal for inquiry.”
Safeguards are emergency measures allowed under international trade law to respond to a sudden surge in imports. In some cases, tariffs or quotas can be imposed on a temporary basis, before investigations are complete.
The safeguards, limiting steel supplies, are a blow to Canada’s oil sector, which has struggled to compete on costs and profitability with the United States, said Tom Whalen, CEO of the Petroleum Services Association of Canada.
Higher costs of steel products, used to drill wells and build derricks and pressure pumps, would add to that competition gap, and Ottawa should compensate companies that are hurt by the safeguards, Whalen said.
“If you’re building equipment, you’re going to use bits and pieces of pretty much all” affected steel categories.
The United States imposed tariffs on imported steel and aluminum on March 23. While Canada was initially exempt, Canadian steel producers warned that U.S. measures would divert cheap steel into Canada. A Reuters analysis found that imports of steel pipe used by the energy industry spiked in the spring.
The European Union announced its own safeguards in July, a combination of quotas and tariffs on 23 steel product categories.
The steel sector employs about 22,000 workers in Canada, including about 10,000 in Hamilton, at Dofasco’s plant, Stelco’s finishing operations and a number of smaller companies.
Canada, long the top U.S. trade partner, has already imposed retaliatory tariffs on U.S.-made steel and other goods.
Recommended Reading
Mexico Pacific Signs Long-term SPA with Korea’s POSCO International
2024-08-29 - Mexico Pacific and Korea’s POSCO International Corp. signed a 20-year sales and purchase agreement for the Asian company to acquire 0.7 mtpa of LNG from the proposed the Saguaro Energía LNG facility on Mexico’s Pacific Coast.
Zachry Proposes Settlement Agreement to End Golden Pass LNG Standoff
2024-07-22 - Zachry, an engineering contractor for the Golden Pass LNG project, submitted a settlement agreement in bankruptcy court that would allow Exxon Mobil and QatarEnergy to move forward with the delayed project.
Shell Trinidad Takes FID at Manatee Offshore Gas Field
2024-07-09 - Shell Trinidad and Tobago Ltd. has taken FID on the Manatee cross-border gas field. Manatee will start production in 2027 and at its peak add 104,000 boe/d or 604 MMcf/d of natural gas to Trinidad’s production profile.
DOE Approves Order Needed for Startup of Venture Global’s Plaquemines
2024-07-19 - Venture Global’s project is one step closer to production with the Department of Energy’s permission to export.
TXOGA Supports Ruling to Pause Biden’s Pause
2024-07-02 - The Texas Oil & Gas Association (TXOGA), the oldest and largest oil and gas trade association in Texas, sided with a Louisiana judge’s ruling to pause U.S. President Joe Biden’s pause of LNG permits.