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Feb 22, 2022

On February 18, 2022, Canada imposed final duties on container chassis from China that will offset China’s illegal and unfair trade (dumping and subsidies) into the Canadian market.

With the help of McMillan LLP, Max-Atlas Intermodal Trailers successfully stood up to the Chinese exporter CIMC Vehicles Group, a Chinese State-Owned Entity (SOE), and secured antidumping and subsidy duties on Chinese chassis. The duties are imposed following a final Canadian International Trade Tribunal decision released on February 18, 2022.

Provisional duties have been in place since October 2021, following a preliminary decision that found CIMC was in violation of World Trade Organization rules. The CITT has now upheld those duties by finding that the illegal dumping and subsidies were harming Canadian producers of container chassis.

That unfair trade was leading to the collapse of Canadian manufacturers, including of Max-Atlas, the largest Canadian producer, a Quebec-based and Canadian owned and operated company. Without the duties, Max-Atlas would likely have ceased manufacturing operations within the next 24 months.

“This final decision means that a 100-per cent Canadian-owned business can keeps its doors open and its 150 employees can keep their jobs,” said William Pellerin, counsel for the complainants, and Partner, International Trade with McMillan LLP. “With this decision, the CITT is applying WTO rules and providing Max-Atlas with a level playing field. Max-Atlas can compete with the best in the world when parties play by the rules. This decision means that Canada’s domestic industry can now regain its market share and continue to operate, pay good wages, innovate new products, and supply Canadian customers. This critical Canadian industry will now survive.”

Consistent with WTO rules, these duties followed a nearly year-long investigation by the Canada Border Services Agency and the Canadian International Trade Tribunal.

Duties will immediately go into effect. The duty rate on Chinese chassis is now 59.1%.

You can read the full decision here.

About McMillan LLP

McMillan LLP’s international trade team frequently assists Canadian manufacturers who are being harmed by unfairly traded imports. McMillan LLP offers advice on all aspects of trade law in Canada. Companies facing unfair competition from imports should contact the firm’s representatives.

McMillan LLP is one of Canada’s leading national law firms with offices in Montréal, Ottawa, Toronto, Calgary, Vancouver and Hong Kong. As a full-service business law firm, McMillan’s wide-ranging expertise serves public, private and not-for-profit clients nationally and around the globe, across a broad array of industries with particular emphasis on infrastructure and construction; natural resources and energy; technology and technology transactions; and transportation. With globally recognized expertise and acknowledged leadership in cross-border transactions and investment into Canada, raising debt and equity, resolution of complex disputes and guidance through complex regulatory regimes, we provide creative and solutions-oriented business and legal advice to our clients. Our firm values — respect, teamwork, commitment, client service and professional excellence — are at the heart of McMillan’s commitment to serve our clients, our local communities and the legal profession.

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Ashley Csanady
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