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The CBSA investigates the dumping and subsidizing of certain potassium silicate solids

Ottawa, Ontario, January 6, 2012 – The Canada Border Services Agency (CBSA) announced today that it is initiating investigations into the alleged injurious dumping and subsidizing of certain potassium silicate solids originating in or exported from the Islamic Republic of Pakistan.

Potassium silicate solid is an inorganic, non hazardous chemical composition used primarily for the production of a derivative product, potassium silicate liquid.  Potassium silicate liquid is commonly used as an ingredient in drilling fluids for the oil and gas industry.

The investigations follow a complaint filed by National Silicates Partnership of Etobicoke, Ontario. The complainant alleges that the dumping and subsidizing of these goods are harming Canadian production by causing the following: lost market share, price depression/suppression, lost sales, reduced profits, reduction in employment, reduced returns on investment and reduced capacity utilization.

Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter's domestic market or at unprofitable prices. Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.

The Canadian International Trade Tribunal will now begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by March 6, 2012. While the Tribunal is examining the question of injury, the CBSA will investigate whether the imports are being dumped and/or subsidized, and will make a preliminary decision by April 5, 2012.

If the Tribunal determines that an unusually large increase in harmful imports has occurred prior to the CBSA's decision, and that the retroactive application of anti-dumping or countervailing duty is therefore justified, duty could be levied on the goods brought into Canada as of today.

copy of the statement of reasons, which provides more details about these investigations, will be available on the CBSA's Web site at www.cbsa.gc.ca/sima-lmsi within 15 days. More information on the CBSA's Anti-dumping and Countervailing Directorate or the Special Import Measures Act can also be found on this site.

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For media information:

Media Relations
Canada Border Services Agency
613-957-6500