Based on customs statistics, steel exports to the Canadian market in chapter 72 of Vietnam in the first half of 2019 increased by 2.8 times over the same period last year, from 37 million USD to 108 million USD. In particular, the group with the strongest growth is coated flat steel, reaching 94 million USD.
To explain this sudden growth, it is necessary to mention the CPTPP Agreement between 11 Pacific countries came into effect earlier this year. Tariff concessions as well as other trade policies have created opportunities for Vietnamese goods to expand to the American Pacific markets and that is the cause of the sudden increase in export volume import, not just steel but also many other products to Canada market.
However, recently, Canada has taken actions to adjust policies related to trade remedies. Specifically, the new law allows Canada to adopt anti-tax evasion measures; amend tax and customs laws to remove the 2-year gap between additional import duties.
In addition, the binding with the United States after reaching an agreement on removing Canada from the list of countries subject to 25% import tax under Section 232 and signing the USMCA agreement makes Canada to strengthen development of anti-tax evasion measures as well as anti-dumping and anti-subsidy measures for imported steel products.
Realizing that a spike in production may be of interest to the Canadian Border Services Agency, the Department of Trade Remedies made recommendations to the Vietnam Steel Association:
- Considering the plan for manufacturing and exporting steel products to the Canadian market, avoiding overheating growth, which increases the risk of anti-dumping investigations (including anti-dumping tax evasion), anti-subsidy);
- Complying with the regulations of the importing country on the origin of goods, failing to abide by acts of illegal transshipment or trade frauds that harm the reputation of export turnover and goods of Vietnam if entangled lawsuits;
- Regularly contact the Department of Trade Defense to update and share information on export developments to have a timely solution when the incident occurs.
To know more detail about Trade Defense, please feel free to contact us at:
Ms Lan – Juridical Manager of MRS Steel
Phone / Whatssap: +84 962 343 746