2002 December Report of the Auditor General of Canada

The subcommittees recommend:

1. That the SIMA legislation and process be continued, subject to the modifications addressed in this report.

N/a

2. That Revenue Canada (RC) take concrete measures to ensure fair and equal access to the SIMA process for small and medium-sized Canadian producers.

3. That the CITT be given the responsibility for making the preliminary determination of injury.

4. That SIMA be amended to provide counsel increased access to confidential information in anti-dumping/countervailing duty investigations conducted by RC.

5. That appropriate changes be made to Canadian trade legislation to permit access by experts to confidential information in SIMA proceedings before the CITT.

6. The inclusion in SIMA Regulations of the fact of dumping in third-country markets as evidence of threat of future injury.

7. That Revenue Canada make allowance in regulations to accommodate representations from interested parties when undertakings are being considered.

8. That section 53(2) of SIMA be amended to allow the Deputy Minister of National Revenue to review and terminate undertakings before five years.

9. That SIMA be amended to make cumulation mandatory in the CITT's procedures for determining injury.

10. No change from the prospective method of duty assessment.

N/a

11. That the Minister of Finance reform SIMA provisions for the conduct of interim** and expiry reviews in light of the comments made above, and in this context, to bifurcate the administrative responsibilities for the conduct of such reviews.

12. That section 76 of SIMA be amended to require the CITT to assess the cumulative injurious effects of dumping/subsidizing in conducting interim and expiry reviews.

13. That a non-exclusive list of factors be included in section 45 of SIMA that would guide the CITT respecting whether and how to conduct a public interest inquiry.

14. That the CITT's decision, that an anti-dumping or countervailing duty might not be in the public interest, should be a formal decision reviewable by a Federal Court.** The level of any duty reduction should continue as at present in section 45 of SIMA to be a report to the Minister of Finance.

15. That the lesser duty concept as provided in Article 9.1 of the WTO Anti-Dumping Agreement be incorporated into section 45 of SIMA provisions for public interest.

16. That the Minister of Finance consider amending SIMA to allow for the temporary exemption of goods from anti-dumping/countervailing duty orders under conditions of domestic short supply.

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