ISSUES MANAGEMENT: MANUFACTURING

Case Study 1: Competition Law Policy

COMPETITION LAW POLICY

challenge

A major North American retailer sources most of its product in China and imports the product into Canada through its U.S. distribution facilities. This product was subject to anti-dumping duties in Canada and the Government of Canada was undertaking a regularly scheduled review of the determination of dumping and the anti-dumping duty rates. The company was concerned that the Government might raise the duty on its product from China in the review process. In addition, because of the manner in which it organized its distribution network (importing Chinese product into Canada indirectly through the U.S. distribution facility), the company was paying higher duties than if it imported its product directly into Canada. As part of its discussions with officials around the anti-dumping duty, the company hoped to help the Government understand that it should not be penalized for the manner in which it organized its distribution network.

strategy

We developed a multi-pronged government relations and communications strategy to convince the Government not to raise the anti-dumping duty rate on the company's product from China in its review. The strategy included representing the company in direct discussions with senior officials in key Departments (including the Department of National Revenue and the Department Foreign Affairs and International Trade) and mobilizing third party allies to make favourable representations to Government decision-makers. We worked closely with company executives and representatives of the Chinese government to assist Canadian officials in understanding the current state of the Chinese economy for the purposes of the determination of dumping. We also developed arguments supportive of the company's position that it should not be penalized for the manner in which it organized its distribution network.

results

The Government of Canada did not increase the anti-dumping duty rate on the company's product from China. Furthermore, the Government took under advisement the matter of reconsidering the higher duty rate imposed on the company's product distributed through the U.S.