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June 9 — Canada is examining allegations that U.S. drywall is being dumped in markets in Western Canada.
The Canada Border Services Agency June 8 said it will review U.S. exports of certain gypsum board products in the western provinces of British Columbia, Alberta, Saskatchewan and Manitoba, as well as the Yukon and the Northwest Territories.
The investigation follows a complaint by CertainTeed Gypsum Canada Inc., of Mississauga, Ontario. Further details will be provided in a statement of reasons, to be issued June 23, it said.
The complaint that triggered the dumping investigation alleges that U.S. wallboard manufacturers are dumping their products in Western Canada at substantially below-market prices compared to what they charge customers in the U.S., according to Mike Loughrey, a spokesman for Malvern, Pa.-based CertainTeed Corp., the Canadian company's parent firm.
“Our actions are meant to stop this practice and bring a level playing field to the Western Canadian marketplace by having all manufacturers conform to regulatory and legal requirements,” Loughrey told Bloomberg BNA in an e-mail. “Due to the early nature of the proceedings, we can offer no additional comment on this matter.”
The investigation applies to goods classified under Canada Customs Tariff No. 6809.11.00.10, which covers gypsum wallboard, faced or reinforced with paper or paperboard only. Those goods have duty-free access to the Canadian market under the North American Free Trade Agreement.
Canadian importers of the allegedly dumped products have until June 29 to respond to the allegations, and U.S. exporters of the goods until July 15. The Canada Border Services Agency will issue a preliminary determination on its investigation on Sept. 6, 2016. If a preliminary finding of dumping is issued against the U.S. products, a final determination will be issued on Dec. 5, 2016.
Meanwhile, the Canadian International Trade Tribunal launched June 9 a preliminary injury inquiry into the complaint filed by CertainTeed. A preliminary determination will be issued on Aug. 5, and if there is a reasonable indication that the Canadian company is being injured by U.S. dumping, the Canada Border Services Agency will continue its investigation.
Canada previously imposed dumping duties on U.S. drywall in 1993, based on an investigation that concluded U.S. products were being dumped in Western Canada at an average margin of dumping of 28 percent.
However, the Canadian International Trade Tribunal rescinded the duties in 1998 after a review process concluded that the U.S. industry was no longer exporting to Canada due to demand and pricing levels that made domestic markets more attractive. The tribunal also found that Canadian drywall manufacturers were exporting to the U.S. at record levels.
The tribunal noted in its 1998 ruling that the dumping duties were imposed in 1993 during the Canadian economy's slow recovery from a recession that had much more severe impacts on Canada than the U.S. The Canadian gypsum board market declined by 18 percent between 1989 and 1991, and in 1991, the domestic industry was only operating at 57 percent capacity, it said.
At the time, major U.S. exporters included USG Corp., National Gypsum Co., Georgia-Pacific LLC and James Hardie Building Products Inc.
Gypsum wallboard, or drywall, are panels made of gypsum plaster pressed between thick sheets of paper and are primarily used in construction of interior walls and ceilings.
To contact the reporter on this story: Peter Menyasz in Ottawa at firstname.lastname@example.org
To contact the editor responsible for this story: Jerome Ashton at email@example.com
The notice is available at http://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/gb2016/gb2016-ni-eng.html.
The Canadian International Trade Tribunal’s notice is available at http://www.citt.gc.ca/en/node/7769.
The Canadian International Trade Tribunal's 1998 ruling is available at http://www.citt.gc.ca/en/dumping/reviews/orders/archive_rr97004_e#I1.
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