Investigating unfair trade to protect Canadian jobs and industry

Why trade investigations matter

When foreign companies sell goods to Canada at unfairly low prices (dumping), or receive financial support from their governments that gives them an artificial advantage (subsidization), it can harm Canadian businesses that produce the same goods here at home.

Trade investigations and enforcement activities help:

• keep Canadian manufacturers and producers competitive
• protect Canadian jobs
• support a strong and fair economy

Without these protections, Canadian producers making the same products could be pushed out of the market by unfairly priced imports. That could leave Canada more dependent on foreign supply and put domestic jobs at risk.

The CBSA's anti-dumping and countervailing program covers everything from household items, like mattresses and sugar, to industrial goods that affect construction and manufacturing, such as steel products.

Every sector contributes to a strong Canadian economy. Canadian workers can feel secure knowing the CBSA works to ensure trade is fair and Canadian jobs are protected.

What is the Special Import Measures Act

The SIMA is a Canadian law that helps stop unfair trade. It allows the CBSA to investigate complaints. If needed, we can apply extra duties on imported goods that are dumped or subsidized.

These extra duties are called:

• anti-dumping duties (to level the playing field when goods are sold at unfairly low prices)
• countervailing duties (to level the playing field when foreign governments provide unfair subsidies)

While these two types of duties are different, we can refer to them both as SIMA duties or trade remedy measures.

We only apply these duties when unfair pricing is proven and when it harms Canadian industry.

Who works on trade enforcement at the CBSA

At the CBSA, investigation officers handle cases involving dumping and subsidizing. Investigation officers:

• review complaints from Canadian producers alleging harmful trade tactics by foreign entities
• analyze pricing and subsidies
• investigate foreign exporters and governments
• recommend enforcement measures based on evidence and trade rules

Refer to our Overview of Canada's anti-dumping and countervailing investigative processes for more information.

What happens after an investigation

If the CBSA finds that imported goods are unfairly priced and the Canadian International Trade Tribunal (CITT) finds that this action is harming Canadian industry, the CBSA may apply anti-dumping and countervailing duties (also referred to as SIMA duties or trade remedy measures) to the imports in question.

These duties:

• level the playing field for Canadian producers
• address the complaint made by industry
• are in place for at least 5 years

These duties can mean higher prices for consumers, especially for everyday items. But they help Canada by keeping our factories open, protecting Canadian jobs, and making sure Canadian companies can keep making the things we need.

SIMA duties are only applied when:

• there is a company in Canada that already makes this product
• the foreign exporter is found to be pricing unfairly
• harm is being caused to the Canadian domestic industry

If the foreign company is pricing fairly, CBSA does not apply SIMA duties to the imports.

Trade remedies can increase import costs

Some goods have duties based on country, producer, or product type. This can affect where you choose to buy your products from and how much it will cost for them to enter Canada.

Understanding which measures apply helps you make informed decisions and avoid unexpected duty assessments after importation.

Report suspected unfair trade

Canada's trade remedy measures protect Canadian workers and industries from unfair trade practices. When those measures are deliberately avoided (circumvented), everyone pays the price.

The Border Watch Line is a secure way to report it to the Canada Border Services Agency.

Use the Border Watch Line to share information about suspected activities used to avoid SIMA duties, including:

• routing goods through third countries or altering products
• misclassification or false declarations
• undervaluation or misrepresentation of goods
• any other practices designed to undermine Canada's trade enforcement system

Contact the Border Watch Line

Related links

• Anti-dumping and countervailing
• Overview of Canada's anti-dumping and countervailing investigative processes
• Measures in force
• Dumping and subsidy investigations
• CBSA Glossary
• Contact the Border Watch Line