By Mark Buckshon
Canadian Design and Construction Report staff writer
WINDSOR – The head of a major steel manufacturer with several Ontario plants is calling for stricter federal rules on steel imports, alleging Canadian authorities are failing to stop “unfairly traded” products from entering the country.
Barry Zekelman, the billionaire CEO of Zekelman Industries, has claimed “illegal” steel, particularly from China, is being rerouted through other countries like Vietnam and Taiwan to circumvent Canadian tariffs.
“This is country-hopping,” Zekelman told CBC News in a report published last September.
Zekelman Industries, described as North America’s largest independent steel tube maker, operates Ontario facilities in Harrow, Kitchener, and Woodstock.
The call to action is paired with a “Buy Canadian” campaign promoted by Zekelman Industries. The initiative’s website urges construction and industrial clients to source domestic steel, citing “quality, safety and reliability” and the importance of supporting Canadian jobs.
The public relations push was amplified Monday with a full-page, full-colour advertisement in the national edition of The Globe and Mail, which detailed the company’s “Buy Canadian” message. (Advertising costs can vary depending on negotiation, contracts, and the like, but the base price for an ad in the national newspaper could be $45,000 to $50,000 or more.)
Also part of the campaign, the company is offering a $1,000 reward to Canadians who are the first to report the use of foreign steel on active or future government-funded construction projects. Zekelman told CBC News to “call it a snitch line,” and said the goal is to “shine a light” on the issue.
The company’s campaign materials state its products are “designed, engineered and manufactured in Canada” and offer a “full chain of custody.” More information on the reward program is available at the company’s website, Zekelman.com/BuyCanadian.
Zekelman has advocated for Canada to adopt tariffs similar to the U.S. “Section 232,” which applies a 25 per cent levy on many steel imports.
He has criticized the Canada Border Services Agency (CBSA) and the Canadian International Trade Tribunal, the bodies responsible for investigating dumping, as “ineffective” and “broken,” according to the CBC report.
The concern is shared by some industry groups. The Canadian Institute of Steel Construction (CISC) has also raised alarms about “dumped and subsidized” steel.
CISC president Ed Whalen told CBC that transshipment is a significant problem, allowing foreign steel to be “cleaned” and sent to Canada, bypassing trade duties.
The CBSA said in a statement to CBC News that it “continues to monitor the steel market conditions closely.”
The CBC also noted that Zekelman Industries is reportedly under investigation in the U.S. for allegedly shipping steel from its Canadian plants that contains foreign steel, a claim the company denies.
