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Canada establishes fact of dumped imports of Ukrainian steel


INTERFAX-UKRAINE Kyiv. January 11

Canada has established the fact of dumped imports of carbon and high strength low alloy steel plates originating in Ukraine, has reported Canada’s authorized agencies
The respective information has been posted at the official web-site of the Canada Border Services Agency (CBSA) on January 4, 2010.
According to this information, margin of dumping – amount to which the normal value of the product in the country of origin exceeds the export price of the product for Canada – for Azovstal Metallurgical Complex (Mariupol, Donetsk region), which is a part of the Metinvest Group, as well as for other group companies, amounts to 15 percent, and for all other Ukrainian exporters – to 21.3 percent.
Here until February 2, 2010 the determination will be made of whether or not there exists an injury caused to the Canadian domestic producers of the like product by the Ukrainian dumped imports.
"In case the fact of injury is not proved the investigation may be terminated without application of anti-dumping measures. If according to the results of the Canadian domestic industry analysis the existence of the mentioned fact is proved, the final anti-dumping duty will be imposed. Yet, the latter scenario is more probable," reported a counsel of Volkov Koziakov and Partners Viktoriia Kotsiubska to the Interfax-Ukraine agency on Monday.
She explained that in accordance with provisions of Anti-dumping Agreement executed as a part of accession to the WTO by Ukraine, a final anti-dumping duty may be imposed only in case if both the fact of dumping and the fact of injury caused to domestic producer by the imports are proved.
V. Kotsiubska mentioned that by virtue of the WTO rules, the final anti-dumping duty cannot exceed the magnitude of the margin of dumping. In other words, for Azovstal and the Metinvest Group that will total 15 percent, and 21.3 percent as for all other producers, but may also be lower, in case it is enough to cover the losses suffered by the Canadian metallurgy.
Meanwhile, according to the Canadian authorities, unless the final determination on the fact of injury is made provisional anti-dumping duties will continue to apply.
Earlier Canada initiated the relevant investigation concerning imports of Ukrainian steel and since October 5, 2009 it has imposed provisional anti-dumping duties of 14.7 percent as for Azovstal and the Metinvest Group of Companies and 20.2 percent as for all other Ukrainian exporters.
V. Kotsiubska reiterated that application of the mentioned provisional measures was preconditioned by the fact of presence of a preliminary determination as to the presence of dumping and damage for the respective industry, including the official notice on an investigation initiation with an opportunity given to interested parties to submit their information and comments.
“Application of provisional antidumping measures prior to a final determination is made, in case where the respective agencies find such measures appropriate to prevent injury being caused to domestic producer in the course of the investigation, is permitted by the rules of the WTO, members of which Ukraine and Canada are,” said the expert.
Besides, V. Kotsiubska reported that the determination of the facts of dumping and injury was in competence of different Canadian agencies. Thus, the fact of dumping is examined by the Canada Border Services Agency, and the fact of injury is investigated by the Canadian International Trade Tribunal unlike Ukraine where both dumping and injury are investigated by the Department of Trade Protection Instruments of the Ministry of Economy of Ukraine.
Reportedly, Azovstal Metallurgic Complex is a part of the Metinvest Group of Companies. Donetsk-based “System Capital Management” CJSC (SCM) and the Kyiv-based Smart-Holding Group of Companies are shareholders of the Metinvest Group of Companies, holding 75 percent- and 25 percent-stakes, respectively, on the basis of partnership.
Amalgamation of SCM and Smart-Holding mining and metallurgical assets with Metinvest started in 2007.
Metinvest Holding Ltd. is the management company of the Metinvest Group of Companies.
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