Marty Warren, director general of the United Steelworkers of Canada, has stated that the government has to take several measures to protect the local steel industry against rising imports.
According to Mr. Warren, import products now account for 61 percent of the domestic steel market, which is a significant increase compared to 15.5 percent recorded in 1984. While the share of imports from the US dropped to just over 20 percent as of 2022, the market share of countries other than the US and Mexico has doubled since 2015. Overcapacity in the global market, offshoring of public procurement, and ineffective trade measures and protections have also exacerbated this situation.
The union official stated that Canada is producing the world’s cleanest or second cleanest steel depending on the product and it needs to leverage this advantage by using low-carbon steel in all public-funded infrastructure projects. Meanwhile, he said it is important for the government to adopt an industrial policy that will create a strong domestic steel market and maintain it. Also, investments in technologies in order to further cut emissions need to be prioritized, he stated, though this process should be implemented in collaboration with the relevant unions to not leave steelworkers behind.
Finally, he suggested that Canada needs to work on its own carbon adjustment mechanism on import steel to shield the local steel industry, and to strengthen anti-circumvention measures so as not allow steel to flow through its borders when the US takes a strong approach to protect its industry.