CBSA Probes Steel Rack Dumping, Subsidies from China

Canada Border Services Agency

Ottawa, Ontario

On April 20, 2026, the Canada Border Services Agency (CBSA) initiated investigations to determine whether steel racks are being sold at unfair prices in Canada (dumped), subsidized, or both. The investigations focus on imports from producers operating in or exporting from China. These practices can harm Canadian industries by undercutting prices, which undermines fair competition.

The CBSA's investigations follow a complaint filed by Arpac Storage Systems, Etalex Inc., Industries Cresswell Inc., the Econo-Rack (2015) Group Inc. and North American Steel Equipment Inc. (the complainants). The complainants allege that as a result of an increase in the volume of the dumped and subsidized imports, they have suffered material injury in the form of price erosion and depression, lost sales, as well as adverse impacts on production, capacity utilization, employment and financial performance.

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 the Canadian producers and will issue a decision by June 19, 2026. Concurrently, the CBSA will investigate whether the imports are being sold in Canada at unfair prices, subsidized, or both, and will make preliminary decisions by July 20, 2026.

The Special Import Measures Act (SIMA) protects Canadian producers and jobs from unfair trade, thereby safeguarding Canada's economy. In 2025, SIMA duties applied to approximately $3.3 billion worth of imports in industries employing 43,728 people in Canada. Currently, there are 185 special import measures in force in Canada.

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