CISC Advocacy Snapshot | June 2019
CISC ADVOCACY SNAPSHOT
The CISC is the voice of the Canadian steel construction industry! We are proud to be the premier organization in creating solutions for the critical issues that challenge the steel construction industry every day.
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U.S. Section 232 Tariffs Lifted Against Canada, U.S. Anti-Dumping Action Continues
U.S. Section 232 tariffs against Canada and Mexico were eliminated on May 20, 2019. The resolution was primarily fueled by the U.S.’s wish for the quick passage of the United States-Mexico-Canada Agreement (USMCA) by all three countries. The Section 232 resolution only applies to the shipment of raw steel and aluminum across the Canadian, U.S. and Mexican borders and does not apply to any other trade dispute at present. The American Institute of Steel Construction’s (AISC) anti-dumping and countervailing duties (illegal government subsidies) against Canada is not affected by this resolution.
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AISC’s Anti-Dumping and Countervailing Duty Case Against Canada Update
On February 4, 2019, the AISC launched a petition for the imposition of anti-dumping (AD) and countervailing duties (CVD) against Canada, China and Mexico on fabricated structural steel. The AISC has made claims that Canada is illegally pricing fabricated steel, in addition to receiving illegal subsidies from Canadian governments.
On February 25, 2019, the U.S. International Trade Tribunal filed a ruling that allowed the case to proceed with the investigations and timelines prescribed.
At present the two trade cases (AD & CVD) are still ongoing and are being investigated by the U.S. Department of Commerce (DOC), with the following upcoming dates to keep in mind:
July 5, 2019
Preliminary CVD Determination
Extended date
July 15, 2019
Preliminary AD Determination
*September 3, 2019
Preliminary AD Determination
If extended – highly likely
It is important to note that these are two different and separate investigations. The CVD case is about illegal government subsidization and will be the first to report out.
*Download AD & CVD timelines in link below.
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Prompt Payment Legislation Spreads Across Canada
To date the following provinces have passed prompt payment legislation and have included adjudication as part of their framework:
Ontario
December 2017
Bill 142, the Construction Lien Amendment Act
Nova Scotia
April 2019
Bill 119, Builders’ Lien Act (Amended)
Saskatchewan
May 2019
Bill 152, the Builders’ Lien (Prompt Payment) Amendment Act
Although legislation has passed in all three provinces, it will be some time for each government to write the regulations and to begin implementation. Ontario is expected to be the first of the three provinces to enforce prompt payment legislation as early as this fall.
The federal prompt payment legislation has been reviewed by b
oth the House and Senate working committees. Representatives of the National Trade Contractors Coalition of NTCCC (which the CISC is a member) have spoken for our support of the bill. It is expected to pass before the end of June.
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Fabricated Industrial Steel Components (FISC) Trade Case Update
In 2017, the CISC and our industrial steel fabrication partners won a world precedent case on fabricated steel. The Canadian International Trade Tribunal levied anti-dumping duties of 48% on China, South Korea, and Spain. China was also found to be illegally subsidizing their steel fabrication industry by 50-70 per cent. The ruling provides Canada 5 years of protection from these countries with the possibility of renewal for another 5 years.
Fluor, Suncor and others appealed our FISC case arguing modular construction does not include fabricated steel but rather a manufactured product and duties should not apply. The appeal was heard in April of 2018 at the Federal Court of Appeal. The final ruling from the court has yet to be released.
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Next CISC Day on the Hill is in 2020
Canadian Steel Construction: Builders of a strong middle class