Canada must stand firm: No room for dumped steel and aluminium

In a rare joint statement, Catherine Cobden, President and CEO of the Canadian Steel Producers Association, and Jean Simard, President and CEO of the Aluminium Association of Canada, have raised concerns over the growing impact of Chinese overcapacity on Canadian markets. The two leaders highlighted the urgent need for decisive policy action in response to the flood of excess capacity, particularly from China, which they argue poses a significant threat to the Canadian steel and aluminium sectors.

The statement follows recent consultations regarding potential policy measures to address Chinese overcapacity, especially within the electric vehicle (EV) supply chains.

The joint statement states:

"As the representatives of two major industries in Canada directly employing more than 31,000 Canadians and contributing more than $27 billion to the Canadian economy, we are taking the significant step of joining our voices to alert the Government of Canada about the clear and present danger state-sponsored excess capacity from China has brought onto our industries, our workers and the communities we support across the country.”

"Canada's allies, including our CUSMA partners the United States and Mexico, have recognized the devastating impacts of Chinese overcapacity and are moving to impose strict and timely tariffs to stem the flow of Chinese steel and aluminium into their markets. Through this consultation process, Canada can align itself with our North American partners to ensure we live up to the trade partnerships we have forged over the past decades."

"Failure to act exposes Canada to becoming the North American entry point for steel, aluminium, as well as EVs due to China's high carbon excess capacity. Preventing such a situation is part of a shared commitment with our trading partners, Mexico and the United States.

"Our industries, therefore, call on the Government of Canada to act swiftly and take a holistic approach by including steel, aluminium and EVs in a single tariff package fully aligned with our largest trading partner. Relying solely on the use of traditional trade remedy actions or lengthy investigations would leave Canada far behind its trading partners and highly vulnerable."

"A CUSMA full tariff alignment for aluminium and steel should be seen as part of a comprehensive package of measures, including EVs, to be put in place against China. For steel, at least 25 per cent tariffs should be imposed on all melted and poured Chinese steel entering Canada. For aluminium, full alignment in scope and quantum with final US Section 301 tariffs on imports of Chinese aluminium products."

"Our hope is that Canada recognizes the strategic importance of the steel and aluminium sectors and the workers and families our industries support. Taking this action would protect Canada from the real threat of unfair trade to our economic prosperity and our trading relationships in North America."

Both Cobden and Simard emphasised the critical importance of safeguarding Canadian industries from the destabilizing effects of unfair trade practices. They underscored the need for robust strategies to ensure the long-term viability and competitiveness of Canada's steel and aluminium producers.

As Canada navigates these complex challenges, the joint statement serves as a stark reminder of the profound impact of global market dynamics, which continue to shape the future of key Canadian industries. It underlines the urgent need for robust strategies.