Marty Warren, national director of the United Steelworkers (USW) of Canada, has evaluated the federal government’s response to US’ doubling of steel tariffs and dumped steel imports.
Mr. Warren stated that steelworkers bear the brunt of the trade war and that many jobs have already been lost, while more are at risk every day. Although the government’s newly introduced tariff-rate quota (TRQ) system is a step in the right direction, it is insufficient to avert the crisis.
The new system limits imports from non-free trade agreement (FTA) countries to 2024 levels in order to prevent trade diversion and block cheap steel redirected from the US from entering Canada. However, it excludes two-thirds of imports, including those from countries such as South Korea and Vietnam, despite their repeated dumping violations, with whom Canada has a free trade agreement. The USW Canada argued that the most effective way to protect domestic steelmakers and capacity is to apply surtaxes to the countries that have repeatedly sold products at dumped prices and do not engage in fair trade, regardless of whether they have a free trade agreement with Canada. The union has also suggested extending the system to FTA partners that have repeatedly dumped steel in the Canadian market and designing the quotas to specifically encourage domestic production.
Meanwhile, Warren has welcomed tariffs on steel imports from China based on the “melt-and-pour” rule, which addressed a longstanding demand from the union, even though the details remain unclear. He concluded by saying that, as the USW Canada, they are ready to work with the government to fix the shortcomings of the system and to close the loopholes.