Evraz, union applaud feds’ move to curb steel dumping

SASKATOON Saskatchewan’s largest steel producer and the head of the union representing its workers applauded the federal government’s decision to consider new trade protections for the industry.

Federal Finance Minister Bill Morneau’s announcement of possible safeguards came 10 weeks after the U.S. government imposed 25 per cent tariffs on Canadian steel imports.

The Canadian protections, if enacted, are designed to curb dumping, a practice in which a manufacturer exports product to a foreign country at low prices with the aim of increasing its market share.

United Steelworkers Local 5980 president Mike Day, who represents about 1,100 workers at Evraz North America PLC’S steel plant north of Regina, acknowledged that escalating trade measures are far from ideal.

At the same time, foreign manufacturers dumping steel products into North America likely propelled the U.S. government to impose tariffs, and any measures to stop it are “only going to help,” Day said this week in an interview.

“We’re not the issue. These countries that have caused the issue are going to be looking for somewhere else to dump, and we’ve got to be able to stop that.”

In an emailed statement, Christian Messmacher, vice president of strategy and corporate development for Evraz North America, said the company “welcomes” the federal government’s move toward safeguards.

“This safeguard is essential to stabilize Canada’s domestic steel market, especially for energy tubular products, with the goal that Canadian producers and steel workers are not further harmed by dramatic increases in offshore steel imports,” Messmacher wrote.

While steel, iron and aluminum represent a small fraction — about $90 million — of Saskatchewan’s $16 billion in annual exports to the U.S., Evraz is understood to be responsible for thousands of direct and indirect jobs.

The U.S. government’s decision to impose the tariffs led to deep concern at the company’s plant. One veteran worker said he and his colleagues could compete with anybody, given a level playing field.

More than two months later, Day said product bound for the U.S. began piling up in the days after the announcement, but has since started to move again, assuaging some workers’ fears about the trade action.

However, even the strongest anti-dumping measures enacted by Ottawa are unlikely to fully offset the uncertainty caused by the U.S. tariffs, a situation that needs to be resolved, he said.

Public consultations on possible safeguards announced by Morneau to “further prevent dumping of unfairly priced imports into the Canadian market” run until the end of August.