Canada gives border security extra powers to crack down on cheap steel, aluminum

The regulatory changes come after a period of uncertainty earlier this month over whether the United States would include Canada and Mexico — already deep into negotiating the new North American Free Trade Agreement — in its list of countries that would have to pay steep new tariffs on shipments of steel and aluminum destined for below the border.

That immediate threat, which prompted a lobbying effort by Canadian political, business and labour leaders, faded once Canada was granted an exemption. But the U.S. has suggested that its reprieve, which is currently set to expire May 1, could be dependent on successful NAFTA talks.

The additional measures, which are designed to strengthen protection that is already there, could also play a role in that fight, Public Safety Minister Ralph Goodale insisted Tuesday.

“We’re not going to give anyone any specious excuse for any kind of action against the Canadian steel or aluminum industry, because that action is totally, entirely and utterly unjustified,” he said.

Prime Minister Justin Trudeau, who raised the matter Monday in a phone call with U.S. President Donald Trump, suggested during question period that the decision to strengthen the existing regime was a recent one.

“This past few days, we’ve looked at strengthening the measures we already have in place because it’s important that we not be taking in dumped steel from around the world,” he said. He delivered the same message when visiting steel and aluminum workers earlier this month, he added.

“We’re going to continue to stand firm to protect our industry and the North American industry.”

Champagne, meanwhile, refused to speculate on how the U.S. might react: “We’ll see the decision on the American side.”

Joseph Galimberti, president of the Canadian Steel Producers Association, said he welcomed the regulatory changes as a good start, but also called on Ottawa to boost resources for investigative capacities at the border agency and consider safeguard measures, such as temporarily restricting imports, when they suspect there is a problem.

The European Union, for example, began an investigation into steel imports Monday as part of its response to the new U.S. tariffs, due to concerns it would increase diversion of cheap metals from other countries into its market.

Galimberti suggested there is no room for complacency.

“We are going to continue our dialogue with counterparts in the U.S. to address things like diversion and trans-shipment that have been identified as concerns,” he said, adding he expects the Liberal government to do the same.

“If there are additional steps to be suggested as part of those discussions, we expect the government of Canada to take those steps.”

Besides, the U.S. has suggested that an exemption will come with a cost.

“By necessity, if you’re going to be defending your aluminum and steel industries, any country that winds up exempt from the tariffs will have to also have some kind of restriction — likely a quota — in order to defend our domestic industries,” White House trade adviser Peter Navarro told CNBC Monday.

“I think we can come to some very nice accommodations with all of our partners where we’re friends and allies, but we want fair and reciprocal trade while we defend key industries like aluminum and steel,” he said.

— With files from Geordon Omand in Ottawa and Alexander Panetta in Washington

— Follow @smithjoanna on Twitter

Joanna Smith, The Canadian Press

by Canadian Press

Canada gives border security extra powers to crack down on cheap steel, aluminum

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