Standing Senate Committee on Foreign Affairs and International Trade

Report of the committee

Thursday, June 1, 2017

The Standing Senate Committee on Foreign Affairs and International Trade has the honour to table its

FOURTEENTH REPORT

Your committee, which was authorized to examine the subject matter of those elements contained in Division 1 of Part 4, of Bill C-44, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures, has, in obedience to the order of reference of May 8, 2017, examined the said subject matter and now reports as follows:

On May 11, 2017, your committee received testimony from officials from the Department of Finance Canada, the Canada Border Services Agency, and the Canadian International Trade Tribunal on the subject matter of Division 1 of Part 4 of Bill C-44, An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures (thereafter “Division 1 of Part 4 of Bill C-44”).

Your committee understands that Division 1 of Part 4 would amend the Special Import Measures Act (SIMA) by implementing various changes to Canada’s trade remedy system, which is administered by the Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal. These changes to SIMA would introduce provisions to allow CBSA to extend anti-dumping or countervailing duties to goods from exporters who are modifying their trade patterns specifically to circumvent duties in Canada. The changes would also allow CBSA to evaluate price reliability in export countries during dumping investigations where the Agency finds price distortion owing to a particular market situation. As well, the new provisions would allow interested stakeholders to submit an application to the CBSA to obtain a binding and appealable ruling from the Agency as to whether a particular product is subject to anti-dumping or countervailing duties. In addition, provisions would allow the CBSA to terminate a trade remedy investigation in respect of an exporter found to have an insignificant margin of dumping or amount of subsidy.

During the hearing, the Committee was informed that the changes to SIMA are intended to improve Canada’s trade remedy system. Specifically, witnesses said that those modifications would modernize Canada’s response to unfair trade practices, align our trade remedy system with our major trading partners, and ensure the compliance of that system with international trade obligations.

Your committee supports the changes proposed in Division 1 of Part 4 of Bill C-44.

Respectfully submitted,

A. RAYNELL ANDREYCHUK

Chair