CSPA calls on feds to tighten anti-dumping rules, support net-zero transition
The Canadian Steel Producers Association (CPSA) is calling on the federal government to act swiftly and decisively to help protect the industry’s competitiveness and safeguard jobs.
The CPSA’s pre-budget submission points to a number of recommendations that it says will help to sustain producers in the face of rising offshore imports, and action by the United States and other allies to support their industries and workers in the global race to attract climate investment.
"Canadian steel producers are a critical component of the economy supporting workers and communities right across our country," said CPSA President and CEO Catherine Cobden. "At the very time we are investing in real action to reduce climate emissions by at least 6 million tonnes by 2030, we are losing market share to high carbon, offshore steel at an unprecedented rate."
Since 2014, offshore steel imports into Canada have grown significantly, increasing from 19% of the market to 39% in 2022. CPSA says Canadian producers are being continually undercut by countries with a history of unfair trade practices. In 2022 alone, hundreds of thousands of tonnes of steel came from countries with active anti-dumping cases against them.
In order to counteract this trend and establish a level playing field for Canadian steel, the association is calling for updates to Canada’s trade-remedy system.
Specifically, it says unless trade remedy enforcement tools are used quickly and consistently, hundreds of thousands of tonnes of unfairly traded goods will continue to enter the domestic market.
The other major issue for producers is competitiveness against American producers as the Canadian industry transitions to greener energy.
Canadian steel is amongst the greenest steel in the world according to international benchmarking studies. Although it has a long way to go before it achieves net zero, the industry has announced transformative projects that will achieve more than 45% reduction of greenhouse gas emissions by 2030.
"While we appreciate the partnerships fostered to date, it must be recognized that the US and other governments are moving aggressively to attract climate investments and support its industries," added Cobden. "To remain competitive and build on our climate leadership, we are calling on the government to adopt an industrial strategy that is comprehensive in investment supports, prioritizes the use of today's lower carbon steel, takes additional steps to further improve our trade defences, and maintains carbon pricing regimes in a manner that enable rather than threaten decarbonization investments in Canada."
The Inflation Reduction Act in the United States provides a range of lucrative incentives for new technologies, as well as explicit incentives to promote the use of US produced steel. It offers $369 million in support for transformational investments. Other allies, such as the EU, are following suit.
In contrast, over the next seven years, the Canadian steel industry will face significant increases in carbon costs. Carbon pricing is forecast to rise to $170 per tonne of CO2e by 2030. American producers will not only benefit from the IRA’s investments and climate subsidies, but they will also not face an equivalent carbon-cost bill.
Among other things, the CSPA is calling for the federal government to maintain current carbon taxing levels, while using its purchasing power to create greater market demand for green steel and reducing imports of carbon-intensive steel from countries such as China, India and Russia. It is also calling for the government to provide further financial support and funding tools for research, development, and adoption of advanced low-carbon production technologies.
Canada’s steel industry is valued at $15 billion, and directly employs 23,000 people while supporting an additional 100,000 indirect jobs.