To date, Canada has initiated investigations into eight trade defense cases (TDM) concerning Vietnamese steel exports, including five anti-dumping cases, two countervailing duty cases, and one safeguard measure case. Canada has targeted most of Vietnam’s major steel export products, such as rebar, corrosion-resistant steel sheets, steel coils, and oil country tubular goods (OCTG).
With its policy of monitoring and tightening management of imported steel to protect the domestic market, it is expected that Canada will continue to research and investigate remaining Vietnamese steel products, including steel wire. Steel wire is widely used in prestressed concrete (PC wire), umbrella frames, tire bead wire (TBW), piano wire, the core wire of conductors, cables for elevators, cranes, welding electrode cores, and nails.
Statistics from Trademap indicate that the export value of Vietnamese steel wire to Canada has increased rapidly in recent years. In 2020, Vietnam exported approximately USD 10 million worth of steel wire to Canada. This export value doubled to USD 21 million in 2021 and continued to grow significantly, reaching around USD 40 million in 2022. This absolute increase in value is one of the criteria for Canada to investigate and apply TDM on Vietnamese steel wire.
Based on the above information, the Trade Defense Department warns of the risk of Canada investigating and applying TDM on imported steel wire from Vietnam and recommends the following actions for businesses:
– Associations and related enterprises should review their steel wire exports to the Canadian market (referencing HS codes: 7223, 7213, 7227, 7306), and prepare to respond if Canada initiates a TDM investigation; proactively research and understand Canada’s TDM investigation regulations and procedures.
– In case of an investigation, associations and related enterprises need to have a strategy for participating in and handling the case; fully cooperate as required by the investigating authority; and regularly coordinate to receive support from the Trade Defense Department.