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Canada investigates trade allegations regarding chassis from China

July 13, 2021
Canadian trailer manufacturers allege harm, unfair pricing on intermodal equipment imports

The Canada Border Services Agency (CBSA) recently launched  two investigations to determine whether container chassis from China are being sold at unfair prices in Canada and whether these goods are being subsidized. This comes as the U.S. wraps up similar investigations which determined that China did indeed violate fair trade practices, with substantial penalties to be attached to chassis imported to the U.S.

The investigations are the result of a complaint by Max-Atlas Equipment International Inc. of Saint-Jean-sur-Richelieu, Quebec. Two other producers of container chassis, Di‑Mond of Stony Creek, Ontario, and Innovative Trailer Design of Toronto, Ontario, have expressed support for the complaint.

The complainant alleges that as a result of an increase of the volume of the dumped and subsidized imports from China, it has suffered material injury in the form of lost market share, lost sales, price undercutting, price depression, declining financial performance and reduced capacity utilization.

The CBSA and the Canadian International Trade Tribunal (CITT) both play a role in the investigations. The CITT will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by August 9.

Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair prices and/or are being subsidized, and will make a preliminary decision by September 8.

Currently, there are 127 special import measures in force in Canada, covering a wide variety of industrial and consumer products, from steel products to refined sugar. These measures have directly helped to protect the Canadian economy and Canadian jobs.

Quick Facts

  • The subject goods are container chassis. More product information is available here: Canada Border Services Agency: Anti-dumping and countervailing
  • The Canadian market for container chassis has been estimated at $75 million annually
  • A copy of the Statement of Reasons, which provides more details about these investigations, will be available on the CBSA's website within 15 days from the date the investigations are launched
  • As of December 31, 2019, special import measures have directly helped to protect 34,810 Canadian jobs and $9.56 billion in Canadian production        
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