Annual report March 31, 2021 - Chapter 1

The Canadian International Trade Tribunal (CITT) is recognized, both here at home and on the international stage, as a centre of excellence in the fair and timely resolution of trade law matters. The Tribunal is a quasi judicial body that provides Canadian and international businesses with access to fair, transparent and timely trade remedy inquiries (to inform the application of anti-dumping*, countervail* duties and safeguard* measures by the government in conformity with Canada’s international trade obligations ), federal government procurement inquiries, and customs duties and excise tax appeals. At the request of the Government, the Tribunal provides advice in economic and tariff matters.

History of the Tribunal

The Tribunal began operations on December 31, 1988, following the merger of the Tariff Board, the Canadian Import Tribunal and the Textile and Clothing Board. However, its history goes back to the time of Confederation and the Board of Customs, whose appellate mandate was transferred to the Tariff Board in 1931. In 1994, the Tribunal absorbed the Procurement Review Board. In 2014, the staff and budget of the Tribunal were transferred to the Administrative Tribunals Support Service of Canada (ATSSC). 

Trade Remedy Inquiries

The Tribunal plays a significant role within Canada’s trade remedy system. Under SIMA, the Tribunal determines whether the dumping* and subsidizing* of imported goods cause injury or threaten to cause injury to a domestic industry. The Tribunal issued 25 trade remedies decisions  and 1 safeguard exclusion decision during the fiscal year—compared to 20 the year before. These decisions related primarily to the steel sector, but also concerned products such as wheat gluten, plywood and upholstered domestic seating. Those decisions that are subject to statutory deadlines were issued within the applicable timelines.

Procurement Inquiries

During fiscal year 2020-2021, the Tribunal received a record number of complaints (102, compared to 72 the year before), pertaining to more than $1.7 billion in federal procurement. The Tribunal issued 88 decisions on whether to accept complaints for further inquiry. Of these decisions, a majority (46) led to the initiation of an inquiry. The Tribunal also issued final decisions on merit where complaints were accepted for inquiry. As a result, a total of 127 procurement decisions were issued in 2020-2021, compared to 89 the year before. All procurement review decisions were issued within legislated deadlines.

Customs and Excise Appeals

A total of 33 appeals were filed (32 under the Customs Act and 1 under SIMA) during the reporting period, and 1 extension of time request was received. The Tribunal issued 13 appeal decisions but did not issue any remand* decision under the Customs Act. 

Tribunal Operations Under COVID-19

On March 12, 2020, when the COVID-19 pandemic hit Canada, ATSSC staff had to relocate their offices at home. Tribunal members and Secretariat staff were forced to adapt very quickly to an unprecedented situation. This meant rapidly adopting technology allowing staff to pursue operations remotely, including adopting Microsoft Teams, upgrading WebEx, securing a secure telecommunications system, and adjusting many practices and procedures. The situation brought many challenges; the creativity and dedication of the Secretariat staff were instrumental in ensuring the Tribunal succeeded in delivering its mandates.

The fact that the Tribunal has been paperless since 2018 facilitated the adaptation to the drastic shift in work environment imposed by the lockdown. The Tribunal’s E-registry pilot project has continued and in fact has been expanded during the year to allow for better integration with the Tribunal’s case management system. Moreover, Secretariat staff held numerous training sessions to help the Tribunal’s stakeholders become more familiar with its electronic tools, particularly the E-registry.

The pandemic also served as a great opportunity for the Tribunal to advance its transition towards electronic communications. Whereas previously the Tribunal sent paper mail to interested parties in Trade Remedies cases, the Tribunal now notifies interested parties of its proceedings mainly via e-mail, and this transition will continue in the coming year.

Lastly, the Tribunal had to adjust its practices and procedures to incorporate virtual meetings and develop new procedures for the transfer and handling of physical exhibits. Despite the numerous challenges this presented the Tribunal, it also brought many opportunities for conducting more efficient proceedings. As explained in the case summary for Inquiry No. NQ-2019-002 below, the Tribunal discovered and successfully addressed the many challenges that this brought forth.

Caseload

Several proceedings that the Tribunal undertakes under the Special Import Measures Act are subject to strict statutory deadlines. The Tribunal has 60 days to conduct a preliminary injury inquiry and issue its determination. The Tribunal has 120 days to conduct a final injury inquiry and issue its finding. As well, the Tribunal must conduct expiry reviews and issue its orders within 160 days.

The Tribunal’s procurement inquiries are also subject to deadlines under the Canadian International Trade Tribunal Procurement Inquiry Regulations. A procurement inquiry can take from 45 to 135 days, depending on the circumstances.

Projected Tribunal Caseload

The Tribunal expects a trend increase in its caseload, especially for its dumping and subsidizing inquiries mandate, leading to one of the highest numbers of trade remedy proceedings the Tribunal has ever seen. This situation would add considerable pressure on Tribunal’s members and Secretariat staff to ensure services delivery and compliance with legislated deadlines. Three main factors point in this direction:

• Historical data show a trend increase in the number of cases coming before the Tribunal (see Table 2 below). Particularly noticeable is the increase in the number of preliminary injury and injury investigations conducted this year.
• In its 2021 Budget, the Government signalled its intention to launch public consultations on measures to strengthen Canada’s trade remedy system and to improve access for workers and small and medium-sized enterprises (SMEs). These changes, if implemented, may make it easier to bring forth trade remedies cases and further encourage the use of Canada’s trade remedies mechanisms—leading to a rise in the average number of cases filed with the Tribunal each year.
• As well, anti-dumping and countervailing findings expire after five years, unless an expiry review is initiated to determine whether the measures remain necessary. The number of expiry reviews has gradually increased over a ten-year period, from an average of 3 reviews for the 2011-2016 period to 5 for the 2016-2021 period. There are now 27 antidumping and countervailing measures in force as of March 31, 2021, that will come up for review within the next 5 years. Other types of inquiries will also likely occur, such as interim reviews and public interest inquiries.

The Tribunal’s caseload for its procurement inquiries mandate has also seen a trend increase over the years that has accelerated in the last year. As indicated in Table 3, the number of complaints received by the Tribunal in 2020-2021 was 55 percent higher than in 2011-2012, with the average number of complaints received during a five-year period having gone from 61 during the 2011-2016 period to 76 during the 2016-2021 period.

Table 2 – Dumping and Subsidizing Inquiries from 2011 to 2021

Table 3 – Procurement Inquiries from 2011 to 2021