New steel safeguards went into effect in May of 2019. These safeguards are meant to protect Canada from unfair trading practices, preserving the Canadian steel trade industry and preventing loss of jobs. For anyone entering the field of international trade management, this matters as it affects the economy and available career opportunities. Canada’s steel exports grew from 2009 to 2018 by 29 per cent. As a student looking to find work in trade management, it’s important to you that the Canadian government makes these moves to protect the industry. Read on for some more information about steel safeguards and how they apply to your future career.
Protection for Careers in International Trade Management & Logistics
Legal actions that are available to the government to protect jobs and industry include incentives, dealing with dumping, and funding manufacturers.
Dumping is when a country exports a product at a price that is cheaper than the price in their home market. Countries can impose rules on these foreign imports that are priced beneath what the domestic government deems fair market value. A review of these dumping cases will help safeguard Canada against unfair competition from foreign imports. Another measure taken is giving the Canada Border Services Agency more ability to address price distortions, to determine whether dumping is occurring.
Incentives are meant to encourage use of Canadian steel products, and remission of surtaxes on US imports for specific circumstances is a way to encourage purchasing and using Canadian products. Similarly, by investing in small and medium manufacturers of steel in Canada, as well as funding users of Canadian steel, the government can further encourage the domestic steel industry. For careers in International Trade Management & Logistics, this means that Canadian trade will be more secure and you may find that you can play a role in sourcing steel materials in an ethical way.
How the Canadian International Trade Tribunal is Involved in Safeguards
The purpose of the Canadian International Trade Tribunal (CITT) is to conduct investigations of trade remedy cases and administer rules regarding anti-dumping, procurement, customs and excise appeals, economic tariff inquiries, and safeguard inquiries. They have the powers of a superior court, but establish rules in a less formal way to increase transparency and accessibility.
The CITT was asked to launch a transparent inquiry into final safeguards. Their report concluded that safeguards were justified for heavy plate and stainless steel wire imports. This led to the changes in May 2019.
Students in International Trade Management School Should know about Tariffs
Aggressive United States tariffs on steel led to Canada challenging the new tariffs at the World Trade Organization and imposing a reciprocal countermeasure, dollar for dollar, against steel, aluminum, and other product imports from the United States. When graduating from international trade management school, it’s helpful to be confident that the Canadian government wants to shield our trade economy.
Tariff Rate Quotas (TRQs) are regimes that combine import quotas and tariffs, to place regulations on imported goods. In effect, TRQs allow for specific products, at a set amount, to be imported with low or no rate of duty. This is also sometimes referred to as the “within access commitment”. Past the “within access commitment”, there is usually a higher rate of duty. New TRQs were placed on two classes of steel goods (the aforementioned heavy plate and stainless steel wire) to protect the Canadian steel industry.
Are you interested in beginning an International Trade Management program?
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