The Canadian branch of the United Steelworkers Union issued a press release Saturday that said the “failure of Justin Trudeau's government to protect Canada's steel sector against cheap, subsidized foreign imports threatens thousands of Canadian families and their communities.”
USW National Director Ken Neumann said in the press release that “cargo ships are now undoubtedly bound for Canada to dump massive amounts of cheap, subsidized foreign steel into our market, threatening workers and producers across the country.”
In October 2018, Canada implemented provisional safeguards on seven steel products to protect Canadian producers and workers from a surge in imports from countries shut out of the US market by the Section 232 tariffs against steel imports.
The USW said the safeguards had proven effective in supporting Canada's steel sector over the last six months, prompting calls from the USW and Canadian steel producers for the government to maintain the measures before the April 27 expiry date.
However, the Trudeau government announced late Friday that it is allowing safeguards to expire on five key Canadian products – hot-rolled steel, pre-painted steel, energy tubular products, rebar and wire rod. The government has decided to maintain safeguards on only two products – steel plate and stainless wire.
“Even with the safeguards in place, market conditions in Canada have deteriorated and approximately 700 of our members have already been laid off,” Neumann noted.
The Trudeau government announced Friday that it will launch a 30-day consultation period with representatives of Canadian steel workers and producers "to determine what further protections are required."
The USW will participate in the consultation process, Neumann said. However, he added that “we are concerned it will be too little, too late to avert the consequences of the Canadian market being exposed to the inevitable surge in foreign imports.”
"The best way to protect Canadian steel producers and workers would have been to maintain the safeguards,” said Leo W. Gerard, USW International President. “The Canadian government's failure to take stronger measures to protect its market and prevent trans-shipment means the Canadian steel industry remains vulnerable to cheap, subsidized foreign imports.”
Neumann added that “even with the government's support for investment in the industry, steel companies are not going to invest in their Canadian facilities if Canada does not protect its market. With the US tariffs still in place and a Canadian market open to a surge in foreign imports, investment will dry up. Most Canadian producers are multinationals that are competing globally for investment and they will invest elsewhere if our market is not protected.”