CSPA makes recommendations to the Government of Canada for Budget 2023
OTTAWA, ON, March 7, 2023 /CNW/ – In the face of rising offshore imports into Canadian steel markets, and action by key allies to support their industries and workers in the global race to attract climate investment, the Canadian Steel Producers Association (CSPA) is calling for swift action to protect Canada’s competitiveness and safeguard jobs.
“Canadian steel producers are a critical component of the economy supporting workers and communities right across our country,” said Catherine Cobden, President & CEO of the Canadian Steel Producers Association. “At the very time we are investing in real action to reduce climate emissions by at least 6 million tonnes by 2030, we are losing market share to high carbon, offshore steel at an unprecedented rate.”
Since 2014, offshore imports into Canada have grown significantly, increasing from 19% of our market to 39% in 2022. Canadian producers continue to be undercut by countries with a history of unfair trade practices. In 2022 alone, hundreds of thousands of tonnes of steel came from countries with active anti-dumping cases against them.
As it is produced today, Canadian steel is amongst the greenest steel in the world according to international benchmarking studies. The industry continues to improve their carbon emissions and has announced transformative projects that will achieve more than 45% reduction of greenhouse gas emissions by 2030. Not withstanding the investments made to date, the industry still has a long way to go to reach the mutual goal of net-zero and additional solutions will be necessary.
“While we appreciate the partnerships fostered to date, it must be recognized that the US and other governments are moving aggressively to attract climate investments and support its industries,” added Cobden. “To remain competitive and build on our climate leadership, we are calling on the government to adopt an industrial strategy that is comprehensive in investment supports, prioritizes the use of today’s lower carbon steel, takes additional steps to further improve our trade defences, and maintains carbon pricing regimes in a manner that enable rather than threaten decarbonization investments in Canada.”
The Inflation Reduction Act in the United States provides a range of lucrative incentives for new technologies, as well as explicit incentives to promote the use of US produced steel. It offers $369M in support for transformational investments. Other allies, such as the EU, are following suit.
Steel producers in Canada have made eight detailed recommendations to the Government of Canada for Budget 2023 to respond to the competitiveness challenges brought on by high carbon imports and the global race to attract climate investment.
To review the CSPA’s budget submission executive summary and eight recommendations, visit https://canadiansteel.ca/files/resources/Finance-Canada-Budget-2023-Submission-Final-Exec-Summary.pdf.
The Canadian Steel Producers Association is the national voice of Canada’s primary steel and the pipe and tube industry, dedicated to ensuring a competitive and sustainable business environment for its members and supply chain stakeholders. Canadian steel producers are integral to Canada’s economy and a vital supplier to many segments of North American industry, including the automotive, energy, construction, and transportation sectors.
SOURCE Canadian Steel Producers Association