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ARTICLE · 29 MARCH 2006

First Canadian Decision Under China Special Safeguard Rules

Davies Ward Phillips & Vineberg LLP
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On October 11, 2005, the Canadian International Trade Tribunal ("CITT") issued a determination that imports of certain outdoor barbeques from China had caused market disruption to Canadian producers of outdoor barbeques.

CanadaInternational Law
Milos Barutciski
Milos Barutciski
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Originally published in the North American Free Trade and Investment Report February 28, 2006

On October 11, 2005, the Canadian International Trade Tribunal ("CITT") issued a determination that imports of certain outdoor barbeques from China had caused market disruption to Canadian producers of outdoor barbeques. The CITT recommended the imposition of a 15 percent surtax on those imports. This was the first Canadian complaint pursuant to the special safeguard regime that China agreed to when it joined the World Trade Organization ("WTO") in November 2001. China agreed that for a period of 13 years Chinese products could be subject to the imposition of temporary restrictions if they were shown to be causing or threatening to cause market disruption to a WTO Member’s domestic industry. "Market disruption" is defined as a situation where imports increase so rapidly as to be a "significant cause of material injury, or threat of material injury to the domestic industry".

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