e-1838 (Steel industry)

Petition to the Government of Canada

• Steel products manufactured in the United States are subject to a 25% surtax imposed by the Government of Canada in response to the U.S. tariff of 25% on imported steel;
• The list of Tariff Items (from the Harmonized System) subjected to the 25% surtax is very broad and includes many types of steel that are not manufactured in Canada;
• Due to investment and infrastructure decisions made by steel companies, many forms and grades of steel required for manufacturers are not made in Canada;
• End use customers specify the grade of steel, not the manufacturer.
• Some patented specialty grades can only legally be made the U.S.;
• The process for remission of surtaxes is very extensive and time consuming, with no guarantee that any of the surtax paid can be recovered;
• Canadian manufacturing companies are being made non-competitive internationally due to the 25% surtax imposed by the Canadian Government;
• Value added manufacturing in Canada provides many high paying jobs and contributes significantly to the Canadian economy; and
• Surtaxes on goods not otherwise available in Canada only hold back the Canadian economy.