Vance Badawey

Your member of parliament for


Niagara Centre

Vance Badawey

Your member of parliament for


Niagara Centre

Menu

News Release: Lifeline for local steel firms hit by US tariffs

Vance Badawey MP for Niagara Centre has worked for the past four weeks with local steel companies to address the impact of a 25 per cent tariff on steel and aluminium imposed May 31 by the president of the United States.

Welland, ON As of today, six companies and more than 1000 jobs have been spared from imminent closure, thanks to the collaborative efforts of MP Badawey, his counterparts in the nation’s capital, and a $2-billion commitment from the Canadian government to defend and protect Canadians in the steel, aluminium, and manufacturing business.
“It is entirely inappropriate to view any trade with Canada as a national security threat to the United States,” stated Badawey. “These unilateral tariffs, imposed under a false pretext of safeguarding U.S. national security, are inconsistent with the United States’ NAFTA and World Trade Organization (WTO) obligations. These tariffs will harm industry and workers on both sides of the Canada-U.S. border, disrupting linked supply chains that have made North American steel and aluminum more competitive around the world.”
“Simply put, we will not back down. We will always protect Canadian workers and Canadian interests,” Badawey said, days after joining the Hon. Foreign Affairs Minister Chrystia Freeland at Stelco in Hamilton, where retaliatory tariffs on US imports were emphazised.
Badawey recently welcomed Welland’s ASW Steel president Tim Clutterbuck to Ottawa, where they met with federal ministers and support staff to be sure ASW and its workers “were on the radar,” when it came to Ottawa’s dealing with Washington DC.
Additional partners that were part of the collaboration included Welded Tube and the IMT Group, owners of PC Forge in Port Colborne, Welland Forge – all of whom risked closure and layoffs to more than 1000 employees combined, as well as retired workers and pensioners specifically those from Stelco and Dofasco.
“We are being proactive and constructive, for our national steel industry, and for local industry in Niagara,” Badawey said. “We’re protecting producers from unfair, unacceptable trade practices, we’re working directly with stakeholders, and we’re supporting innovation and diversification in steel and steel-related industries to enhance a sustainable environment and strengthen our nations’s global trade performance.”
Contact:
Dan Lovell
Executive Assistant
Vance Badawey MP for Niagara Centre
613-995-0988
vance.badawey.A1@parl.gc.ca
——————————————————————————————–
BACKROUNDER
Support for Steel and Aluminum Workers and Industry
  • In defence of Canadian workers and Canadian industry, the Government of Canada will make available up to $2 billion to defend and protect the interests of Canadian workers and businesses in the steel, aluminum and manufacturing industry.
  • This includes $25 million over four years to extend work-sharing agreements for impacted businesses by an additional 38 weeks as well as increasing funding through skills training and employment services delivered by provinces and territories.
  • The Government of Canada will provide $1.7 billion through Export Development Canada and Business Development Canada to provide financing and liquidity to keep businesses open and operational.
  • The Government of Canada will also offer up to $250 million in new support through the Strategic Innovation Fund to help bolster the competitiveness of Canadian manufacturers and better integrate the Canadian supply chain of steel and aluminum.
  • The Government of Canada will invest $50 million over five years to help Canadian companies diversify their exports to take advantage of new trade agreements, such as CETA and CPTPP. Working in partnership with business associations, this will include new “export readiness” grants.
  • We will continue to carefully monitor and assess the situation nationally and regionally to make sure that our actions meet the needs of workers that may be affected by the tariffs.
  • The Government of Canada is unwavering in its commitment to protecting and promoting the success of Canadian SMEs.
  • Small and medium-sized businesses are the backbone of the Canadian economy. They account for 99 percent of all businesses and almost 90 percent of all private sector jobs.
  • The Government is committed to ensuring steel producers remain a vital part of our economy. Important steps to achieve this include: o Protecting producers from unfair trade, such as imposing duties on dumped steel products; o Supporting innovation and steel-related research that allow steelmakers to play a crucial role in manufacturing supply chains. o Approving environmentally sound energy projects, such as the Line 3 in Alberta and Manitoba and the Kinder Morgan Trans Mountain Expansion, which create opportunities for our steel producers.
Support for retail boating and appliance sectors impacted by tariffs
  • The decision by the United States to impose tariffs on Canadian steel and aluminum is completely unacceptable.
  • Unfortunately, these tariffs will harm industry and workers on both sides of the CanadaU.S. border.
  • The Government of Canada will work with stakeholders to minimize the harm posed by these tariffs. Any major items such as boats and appliances purchased before July 1st and in transit will not be subject to the new tariffs. The Government of Canada will continue to carefully monitor and assess the situation nationally and regionally to ensure those who purchased major items such as boats and appliances prior to July 1st are not unduly impacted.
Implementation of Canadian countermeasures
  • Effective July 1, 2018, certain goods originating from the U.S. are subject to a surtax of 25 per cent or 10 per cent on the value for duty in accordance with the United States Surtax Order (Steel and Aluminum) and United States Surtax Order (Other Goods).
  • These countermeasures will only apply to goods originating from the U.S. and will remain in place until the U.S. eliminates its trade-restrictive measures against Canada.
  • The administration and enforcement of the surtax orders is the responsibility of the Canada Border Services Agency (CBSA) for both commercial and traveller streams.
  • All goods entering Canada, regardless of mode and whether they are eligible for duty and tax-free exemptions, must be reported to the CBSA.
  • A complete list of goods subject to the surtax is available on the Department of Finance’s website.
Steel Dumping, Transshipment and Diversion
  • We continue to monitor the trade situation closely. Canada has already taken steps to address diversion and dumping into the Canadian market and will work with all affected stakeholders on next steps to protect our workers and companies.
  • We know there is a risk that imports will continue to increase, harming Canadian steel producers. In particular, in the case of energy tubular, steel plates and rebar products, we will continue to work with stakeholders in the coming weeks on an appropriate response, including safeguards.
  • Canada shares the concern over dumped steel into the North American market. Our producers face similar challenges.
  • Canada has a strong, responsive trade remedy system to address dumped and subsidized imports, and is committed to protecting our workers and industry from unfair trade.
  • The Government of Canada has also increased funding and introduced new regulations to further strengthen Canada’s trade remedy and enforcement system and support Canadian workers and industries. This will help prevent transshipment and diversion of unfairly priced foreign steel and aluminum into the North American market.
These measures include:
  1. legislative and regulatory amendments to modernize and enhance the effectiveness of the trade remedy system
  2. new funding of more than $30 million over five years and $6.8 million per year on an ongoing basis to strengthen trade enforcement
  3. establishing new steel and aluminum trade monitoring committees that include participation from industry and union stakeholders as well as provincial and territorial representatives
  4. changes to its country of origin marking regime to better align Canada’s regime with that of the U.S.
  5. Canada is also working hard with our international partners to address the global overcapacity that has pushed down prices.
NAFTA
  • Canada believes that a fair agreement that benefits all three NAFTA partners is possible, and we are working tirelessly to achieve this.
  • Canada will continue to play a proactive and constructive role in ongoing talks. We are committed to finding win-win-win solutions that create jobs and contribute to our competitiveness as a region.
  • Canada’s objective is a good agreement, not just any agreement.