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Canada's Steel Producers Welcome Decision to Join WTO Consultations with China on Prohibited Subsidies

May 23, 2007 ( Ottawa, ON )

The Canadian Steel Producers Association (CSPA) today welcomed the announcement by the Minister of International Trade, the Honourable David Emerson, that Canada has joined the request initiated by the United States at the World Trade Organization (WTO) for consultations with China on prohibited industrial subsidies.

“This is a positive first step by Canada within the formal processes of the WTO to engage China in a constructive manner regarding its trading practices,” said CSPA President Ron Watkins. “We continue to be concerned that China has not fulfilled its WTO obligations, in particular with respect to the array of illegal subsidies provided to many sectors including steel. The subsidies in question distort markets, threatening the competitive environment for manufacturing enterprises and the significant jobs they sustain.”

The CSPA has consistently taken the view that China must adhere to the WTO rules to which it has agreed as a condition of its full participation in global markets, including that of Canada. The impact of subsidies is particularly pronounced in the steel sector, both directly in steel products and indirectly through imports of steel-intensive goods. “Canada’s steel producers are prepared to compete fairly on a commercial basis”, said Mr. Watkins, “but our producers cannot compete against foreign governments in the marketplace.”

The original U.S. complaint was filed on February 2, 2007, and Mexico took similar action shortly thereafter. These filings identified a series of practices of concern, including various export subsidies as well as import-substitution policies. China had committed to removing these measures upon accession to the WTO in December 2001, but several of these measures remain fully or partially in place.

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Contact:

Ron Watkins
President, CSPA
(613) 238-6049