Several days after U.S. government introduced global tariffs on steel and aluminum, government of Canada on Tuesday said that it would bring new rules on preventing diversion and transshipping of steel and aluminum, reported by Wall Street Journal.
According to the Canadian government, the new anti-circumvention measures announced on Tuesday will allow Canadian government officials to investigate companies that may be trying to avoid duties by slightly modifying the products or assembling them in a third country which is not subject to the duties. Additionally, Canadian border agents will have more flexibility in the criteria they will use to determine whether products imported into Canada are at artificially low prices.
In announcing the changes on Tuesday, Canada Prime Minister Justin Trudeau said the country wouldn’t allow North American industries to be hurt by unfair trade practices. “Our businesses and workers rely on our integrated industries, and we will take strong action to defend and protect our most important trade relationships,” said Mr. Trudeau. “Canada will not be used as a backdoor into other North American markets.”
Currently, Canada is one of the countries which receive temporary exemptions to the tariffs until May 1. The U.S. also indicated last week that the exemptions could be extended if officials are satisfied with those countries’ efforts to address global excess capacity in steel and aluminum.