Canada imposes lower anti-dumping duties on Vietnam wire imports than China and Egypt

?Canada has recently imposed temporary anti-dumping duties on wire imports from 3 countries, including Vietnam, ranging from 6.1% to 38.9%, significantly lower than those applied to China and Egypt.

This decision, announced by the Canada Border Services Agency (CBSA), marks a crucial development in Canada's ongoing anti-dumping investigation into steel wire products originating from the three countries.

Why Vietnam Stands Out for Importers

The preliminary findings, released by the CBSA, indicate that Vietnamese companies face the lowest range of duties compared to their counterparts from China and Egypt. Specifically, temporary duties for Chinese companies range between 50.9% and 71.1%, while Egyptian companies face rates from 49.7% to 99.8%. This disparity positions Vietnamese steel wire imports as a more attractive option for Canadian importers, providing a unique competitive advantage.

The final determination, issued on September 4, 2024, further solidified this position. The CBSA set duty rates for prominent Vietnamese companies, such as Hoa Phat Dung Quat Steel at 17.7% and Hoa Phat Hai Duong Steel at 13.5%. In contrast, Chinese companies like Jiangsu Shagang face a duty rate of 34.0%, with other Chinese companies subject to 46.2%. Meanwhile, other Egyptian entities are charged 21.3%.

What This Means for Canadian Importers

The significantly lower anti-dumping duties on Vietnamese steel wire imports mean that Canadian importers can source these products at a more competitive price. The reduced cost burden encourages continued trade between Canada and Vietnam, offering a financial incentive for businesses to choose Vietnamese suppliers over other international counterparts.

With the Canadian International Trade Tribunal (CITT) continuing its investigation to determine if these imports have caused significant damage to the domestic industry, a final conclusion is expected by October 4, 2024. If no injury is found, the case will be dismissed, potentially lifting even the temporary duties. However, if evidence of injury is established, the current duties will likely remain in place.

Vietnam's Growing Presence in the Canadian Market

Vietnam's export turnover of wire products to Canada has seen remarkable growth in recent years, climbing from USD 10 million in 2020 to USD 21 million in 2021 and reaching approximately USD 40 million in 2022, according to Trademap. This upward trend not only underscores the competitiveness of Vietnam's steel industry but also highlights the increasing attractiveness of Vietnamese products amid stricter trade remedy measures from Canada.

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