Provisional Penalty: CBSA’s PreliminaryDetermination
The CBSA’s ruling stems from an ongoinginvestigation into allegations that Borçelik was sellingcorrosion-resistant steel sheet at prices significantly lower than fair marketvalue in Canada. According to the CBSA’s April 17 statement, the agency has "reasonablegrounds to believe that the goods are being dumped", resulting ininjury to the Canadian steel industry.
As a result, a provisional anti-dumping duty of 22.9%will be applied on all subject goods imported from Borçelik released on orafter April 17, 2025. These provisional duties will remain in effect untilthe agency issues a final decision, expected later this year.
Product Range & HS Codes Affected
The products involved are a broad category of corrosion-resistantsteel sheets, primarily galvanized or coated with other protectivesubstances like zinc, aluminum-zinc alloy, or paint. These materials arecrucial for construction, automotive manufacturing, and white goods.
The CBSA listed over 30 Harmonized System (HS) codesin its preliminary findings. Some of the prominent ones include:
This wide scope underscores the diversity of Borçelik’sexport portfolio and the potential breadth of impact on Canadian industriesand importers.
Industry Concerns & Canadian Context
Canadian steel producers have long argued that unfairlypriced imports undermine domestic production. An anonymous executive from StelcoHoldings Inc. commented:
“We can’t compete on an uneven playing field.This decision from CBSA is a step toward restoring market fairness andpreserving Canadian jobs.”
The Canadian Steel Producers Association also issued astatement supporting the CBSA's move, noting the importance of defendingagainst dumped imports, which are often tied to state-backed producersabroad.
Borçelik's Response & Turkish Trade Angle
Borçelik, a joint venture between Borusan Holding andArcelorMittal, is Turkey's largest producer of galvanized and coated flatsteel. The company responded with disappointment, stating:
“We strongly reject the dumping claims andintend to cooperate fully with the CBSA to resolve this matter. Our pricesreflect international market trends and production efficiency, not unfaircompetition.”
Trade experts in Ankara have raised concerns that this casecould strain Canadian-Turkish trade relations, especially in metals andmanufactured goods, where Turkey has been attempting to increase exports amiddomestic economic pressures.
Wider Global Implications
This case adds to a growing global trend of steelprotectionism, echoing recent actions by the EEC against Chinese& Ukrainian steel, and the U.S. Department of Commerce’s own AD andcountervailing duties on similar products. The move illustrates how nations areincreasingly prioritizing domestic industrial resilience over purecost-efficiency.
The IMF’s Kristalina Georgieva recently remarked that intoday’s geopolitical climate,
“Where goods are made may matter more than howmuch they cost.”
CBSA’s decision appears to align with this new logic of "economicsovereignty and national interest."
Next Steps: Final Decision Pending
CBSA will continue to collect data and arguments from allparties, including Canadian importers, steel users, and Borçelik itself, beforeissuing a final determination later in 2025. If the CBSA confirms itsfindings, the duties may become definitive for up to five years, pendingreview by the Canadian International Trade Tribunal (CITT).
Key Takeaways:
