TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 115

Reference..

R&R

Canadian File.

Canadian Surtax

We have now had an opportunity of looking up the papers. When Hong Kong first agreed to restrict exports of polyester/cotton shirts to Canada the relevant provision was contained in sub-section 7(c) of section 40A of the Customs Act. This sub- section was enacted by the Diefenbaker Government in 1958 and the text was as follows :-

2.

"(c) where at any time it appears to the satisfaction

of the Governor in Council on a report from the Minister that goods of any kind not entitled to entry under the British Preferential tariff or any lower tariff are being imported into Canada under such conditions as prejudicially or injuriously to affect the interests of Canadian producers or manufacturers the Council may authorize the Linister to determine the value for duty of any class or kind of such goods, imported into such region or part of Canada and during such period as the Minister may specify, or may authorize the Minister to prescribe the manner in

傅

which such value for duty shall be determined, and the valuc so determined shall be deemed to be fair market value of such goods."

buthe

ucently

ted

The only enacted text, which formed part of what the Canadian White Paper describes as the modernisation of Canada's anti-dumping legislation, now forms sub-section 1A of section 7 of the Customs Tariff Act, as follows :

3.

"(1a) Where at any time it appears to the satisfaction of the Governor in Council, on a report of the Minister of Finance, that goods of any kind, the growth, produce or manufacture of any country, are being imported into Canada under such conditions as to cause or threaten serious injury to Canadian producers of like or directly competitive products, any rodds of the same kind and the growth, produce or manufacture of that country may, by order of the Governor in Council, when imported into such region or part of Canada and during such period after the making of the order as the order may specify, in addition to the duties otherwise established, be made subject to a surtax at such rate, not exceeding the rate that in the opinion of the Governor in Council is sufficient to prevent further such injury or the threat of such injury, as is specified in the order."

You will wish to know the following points :

a) that neither provision was mandatory and that both were enacted after Canada's accession to the GATT;

b)

that S.40A(7)(c) could be applied on a non-discriminatory basis, i.e. to all n.f.n. suppliers;

c) the new provision could be applied to "any goods of the

same kind which are grown, produced, or manufactured" in "that country", i.c. the country from whom goods are being imported into Canada under such conditions as to cause or threaten serious injury to the Canadian producers of like or directly competitive products;

/a)