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Cablegate: Canada Customs' Dumping Investigation Could Impact

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS OTTAWA 001629

SIPDIS

DEPT FOR EB/TPP/BTA/EWH MKEHOE
DEPT PASS USTR FOR SCHANDLER AND ASTEPHENS
USDOC FOR 4320/ITA/MAC/JBENDER

E.O. 12958: N/A
TAGS: ETRD CA
SUBJECT: CANADA CUSTOMS' DUMPING INVESTIGATION COULD IMPACT
U.S. STEEL EXPORTERS, BUT NOT MANUFACTURERS


1. Canada Customs and Revenue Agency (CCRA) has initiated an
investigation into the alleged injurious dumping of steel
structural tubing, known as hollow structural sections,
originating in, or exported from Korea, South Africa and
Turkey. The investigation covers hollow structural sections
made of carbon and alloy steel, welded, in sizes up to and
including 16 inches in outside diameter for round products
and up to and including 48 inches in periphery for
rectangular and square products. Although the investigation
does not include U.S. manufacturers, CCRA has informed post
that some of the goods subject to the investigation have been
sold to importers in Canada by exporters located in the U.S.
A complete list of the U.S. exporters is provided in
paragraph four.

2. Three Canadian Manufacturers filed a complaint alleging
that the dumping of steel structural tubing has caused or is
threatening to cause injury to the companies' production of
hollow structural section in Canada. According to figures
contained in the complaint, imports from Korea, South Africa
and Turkey rose from approximately 8,800 tonnes in 2001 to
approximately 32,000 tonnes in 2002. CCRA will conduct an
investigation to determine whether the subject goods imported
into Canada during the period of April 1, 2002, to March 31,
2003, have been dumped. The Canadian International Trade
Tribunal (CITT) will conduct a preliminary inquiry to
determine if there is evidence that discloses a reasonable
indication that the dumping has caused or is threatening to
cause injury to the Canadian industry. Details on the
investigation can be found at by clicking on "Statements of
Reasons" at www.ccra-adrc.gc.ca/sima.

3. From customs import documentation, the CCRA has identified
24 exporters of the subject goods, ten of which are based in
the U.S. As a part of the investigation, CCRA has requested
information from exporters to determine the normal value and
the export price of the goods shipped to Canada. Exporters
have until June 29, 2002 to respond to CCRA's request for
information. CCRA's manager for the Industrial Products
Division Jim Gove told econoff that a failure to respond to
CCRA's request for information will lead to a likely less
favorable Anti-dumping determination than companies which
provide detailed information. According to Gove, U.S.
exporters are not the major exporters of hollow structural
sections to Canada. Sales figures from U.S. companies
indicate exports to Canada are sideline operations of
businesses that are primarily focused on the U.S. market.
Because of this, Gove did not expect many of the U.S.
exporters to provide the requested information.

4. U.S. Exporters of structural tubing from the U.S. to
Canada include:

- American Steel Inc., 19022 - 80th Avenue South, Kent,
Washington, 98032
- Atlas Tube Inc. (USA), 13101 Eckles Road, Plymouth,
Michigan, 48170
- Castle Metals, 3400 North Worlf Rd., Franklin Park,
Illinois, 60131
- Industrial Export Co., 3340 NW St. Helens Road, Portland,
Oregon, 97201
- North Pacific Group Inc., P.O. Box 3983, Portland, Oregon,
97208
- Pusan Pipe America, Inc., 9615 S. Norwalk Blvd, Ste. B,
Santa Fe Springs, CA, 90670
- Seaport Steel Co., 3660 E. Marginal Way S, Seattle,
Washington, 98124
- Stemcor USA Inc., #7815 Empire State Building, 350 Fifth
Ave, New York, NY, 10118
- Tubular Steel, Inc., 13322 142nd Ave. E, Orting,
Washington, 98360
- Vass Pipe & Steel Company, Inc., 158 Third Stree, Mineola,
New York, 11501
KELLY

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