Special Import Measures Regulations

37.1 (1) The following factors may be considered in determining whether the dumping or subsidizing of goods has caused injury or retardation:

• (a) the volume of the dumped or subsidized goods and, in particular, whether there has been a significant increase in the volume of imports of the dumped or subsidized goods, either in absolute terms or relative to the production or consumption of like goods;

• (b) the effect of the dumped or subsidized goods on the price of like goods and, in particular, whether the dumped or subsidized goods have significantly

  • (i) undercut the price of like goods,

  • (ii) depressed the price of like goods, or

  • (iii) suppressed the price of like goods by preventing the price increases for those like goods that would otherwise likely have occurred;

• (c) the resulting impact of the dumped or subsidized goods on the state of the domestic industry and, in particular, all relevant economic factors and indices that have a bearing on the state of the domestic industry, including

  • (i) any actual or potential decline in output, sales, market share, profits, productivity, return on investments or the utilization of industrial capacity,

  • (ii) any actual or potential negative effects on cash flow, inventories, employment, wages, growth or the ability to raise capital,

  • (ii.1) the magnitude of the margin of dumping or amount of subsidy in respect of the dumped or subsidized goods, and

  • (iii) in the case of agricultural goods, including any goods that are agricultural goods or commodities by virtue of an Act of Parliament or of the legislature of a province, that are subsidized, any increased burden on a government support programme; and

• (d) any other factor that is relevant in the circumstances.

(2) The following factors may be considered in determining whether the dumping or subsidizing of goods is threatening to cause injury:

• (a) the nature of the subsidy in question and the effects it is likely to have on trade;

• (b) whether there has been a significant rate of increase of dumped or subsidized goods imported into Canada, which rate of increase indicates a likelihood of substantially increased imports into Canada of the dumped or subsidized goods;

• (c) whether there is sufficient freely disposable capacity, or an imminent, substantial increase in the capacity of an exporter, that indicates a likelihood of a substantial increase of dumped or subsidized goods, taking into account the availability of other export markets to absorb any increase;

• (d) the potential for product shifting where production facilities that can be used to produce the goods are currently being used to produce other goods;

• (e) whether the goods are entering the domestic market at prices that are likely to have a significant depressing or suppressing effect on the price of like goods and are likely to increase demand for further imports of the goods;

• (f) inventories of the goods;

• (g) the actual and potential negative effects on existing development and production efforts, including efforts to produce a derivative or more advanced version of like goods;

• (g.1) the magnitude of the margin of dumping or amount of subsidy in respect of the dumped or subsidized goods;

• (g.2) evidence of the imposition of anti-dumping or countervailing measures by the authorities of a country other than Canada in respect of goods of the same description or in respect of similar goods; and

• (h) any other factor that is relevant in the circumstances.

(3) The following additional factors may be considered in determining whether the dumping or subsidizing of goods has caused injury or retardation or is threatening to cause injury:

• (a) whether a causal relationship exists between the dumping or subsidizing of the goods and the injury, retardation or threat of injury, on the basis of the factors listed in subsections (1) and (2); and

• (b) whether any factors other than the dumping or subsidizing of the goods have caused injury or retardation or are threatening to cause injury, on the basis of

  • (i) the volumes and prices of imports of like goods that are not dumped or subsidized,

  • (ii) a contraction in demand for the goods or like goods,

  • (iii) any change in the pattern of consumption of the goods or like goods,

  • (iv) trade-restrictive practices of, and competition between, foreign and domestic producers,

  • (v) developments in technology,

  • (vi) the export performance and productivity of the domestic industry in respect of like goods, and

  • (vii) any other factor that is relevant in the circumstances.