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Dissenting Opinion by the Bloc Québécois

Report on the Special Import Measures Act



December 1996



Foreword:

The Bloc Québécois participated enthusiastically in the proceedings of the Sub-committees of the Standing Committee on Foreign Affairs and International Trade and the Standing Committee on Finance that reviewed the Special Import Measures Act. We want to pay tribute to the excellence and relevance of the extensive testimony heard by the Sub-committees. The members of the Bloc Québécois were also impressed by the quality of the briefs submitted.

We therefore read the first draft of the report with great interest. After in-depth study of it, we came to the conclusion that there were a number of important elements that needed amending. Some of our amendments were incorporated into the revised report. For example, the Bloc Québécois succeeded in improving access to the investigation process for small and medium-sized producers. We managed to introduce improvements in the way the CITT operates, and we persuaded the government party that the recommendation on cumulation should call for it to be mandatory in the CITT's procedures for determining injury. A section on circumvention was included at our suggestion, and the section on reviews was strengthened.

Despite these significant changes, a number of the Bloc's recommendations were dismissed by the government party. Our dissenting opinion centres on these elements.

1 - Data Collection, page 15, first paragraph:

We agree with the proposal of the Canadian Steel Producers' Association that Revenue Canada disregard unsolicited submissions from parties other than the complainants prior to the initiation of an investigation. Such a measure would mean that Revenue Canada would take into consideration information from the complainant only, and that it would not be required to act on unsolicited comments. This measure seems reasonable to us, given that it would apply only to the period prior to the initiation of an investigation.

In the second paragraph, we cannot agree with the way the report deals with "massive dumping". It is true that Article 10.6 of the WTO Anti-dumping Agreement is open to interpretation, but from there to asserting, without the benefit of any in-depth legal opinions, that the whole concept of "massive dumping" is inconsistent with this Article, is a step that we are not prepared to take.

In our view, before renouncing all measures in this regard, the Canadian government should obtain legal opinions on the issue, which is important for those of our industries that have fallen victim to "massive dumping". Given favourable opinions, the government should go ahead and implement such a measure.

2 - Material injury, page 21, second paragraph

The Bloc Québécois supports the incorporation in SIMA of a definition of the term "material injury''. Incorporating a definition of this term in SIMA, along with the factors proposed in the present Regulations, would clarify this important concept, for the benefit of all parties concerned.

3 - Prospective/retrospective duty assessment, page 26

On this point, the Bloc Québécois is of the opinion that Revenue Canada should continue to use the prospective method of duty assessment. However, in cases where there would likely be significant fluctuations in prices or costs, we would like Revenue Canada to be authorized to use the retrospective method of duty assessment. This method would be used exceptionally and only when considered necessary by Revenue Canada.

4 - Lesser duty, page 36, sixth paragraph

We consider that at present it would be premature to proceed with incorporating a provision on the lesser duty concept in SIMA. The government must stop adopting policies that weaken protection for Quebec and Canadian businesses when our main economic partners are not acting in a similar manner. We consider that the government party is behaving naïvely in this regard. We believe that the United States, which absorbs nearly 80% of our exports, must adopt such a measure itself before this provision is incorporated in SIMA.

5 - Short supply, page 37, fourth paragraph

The Bloc Québécois believes that the federal government should not consider amending SIMA so as to incorporate in it an exemption under conditions of short supply. We are of the opinion that there is no need for in-depth consideration of such a measure, as it so clearly raises a number of problems. The administration of such a measure appears problematic. As well, a problem of abuse by importers might be created. Further, such a measure will distort the rules of supply and demand. Lastly, an exemption under conditions of short supply will violate the very principles of assessing anti-dumping and countervailing duties.

Benoît Sauvageau

Member of Parliament for Terrebonne

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