The CBSA launches investigations into the alleged dumping and subsidizing of steel racks from China

OTTAWA, ON, April 23, 2026 /CNW/ – 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.

Quick facts

• Steel racks are used in storage systems and the most common type in Canada is the roll-formed pallet rack. The primary components of steel racking systems include vertical frames, horizontal beams or cantilever arms, beam connectors, pallet safety and support bars, row spacers, cross-aisle ties, base or foot plates, wall ties, steel hardware and other accessories. For more product information, please refer to the CBSA’s Anti-dumping and countervailing webpage.
• The complainants are producers of steel racks in Canada. Based on the information included in the complaint, the complainants represent the majority of Canadian production of steel racks.
• The Canadian market size for steel racks is estimated at approximately $415 million annually.
• A statement of reasons, with additional details about the investigations, will be available on the CBSA’s website within 15 days from the date the investigations are launched.
• Canada’s trade remedy system is designed to ensure that imported goods are priced fairly relative to domestic products. To counteract unfair trade practices, the CBSA has the authority under the Special Import Measures Act to initiate investigations if a complaint is properly documented and impose trade remedy measures when there is evidence that dumping or subsidizing is causing or threatens to cause injury to Canadian producers.
• In 2025, the CBSA launched a combined 33 dumping and subsidy investigations for 9 different products.
• So far in 2026, the CBSA has launched a combined 9 dumping and subsidy investigations for 5 different products.

Associated links

• Special Import Measures Act (SIMA) investigative process and timeframes
• Overview of Canada’s anti-dumping and countervailing investigative processes
• Anti-dumping and Countervailing
• Canadian International Trade Tribunal (CITT)

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SOURCE Canada Border Services Agency