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EXPIRY REVIEW: SMALL POWER TRANSFORMERS

CITT TO REVIEW ANTI-DUMPING DUTIES ON CERTAIN SMALL POWER TRANSFORMERS

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On October 1, 2026, the Canadian International Trade Tribunal (“CITT”) announced that it is starting its expiry review (“Review”) on the dumping and subsidizing of certain small power transformers from Chinese Taipei, and South Korea. The CITT will use its Review to determine whether existing trade protections – in place since 2021 – will continue for another five years or be allowed to expire.

Below, we explain what this Review is, how it will work, and why those in the Canadian power transformers industry may wish to get involved.

What is an Expiry Review?

Expiry Reviews are conducted by the CITT with the investigative assistance of the Canada Border Services Agency (“CBSA”). Reviews are held to determine if Anti-Dumping Duties (“ADDs”) and/or Countervailing Duties (“CVDs”) currently imposed under the Special Import Measures Act (“SIMA”) are still necessary to protect the domestic market, and therefore should be renewed. They may also be kept in place but modified, or left to expire altogether.

ADDs/CVDs are generally significant – often well over 100% of the value of the import – and have a BIG impact on the Canadian market for impacted goods. They are put in place when the CITT determines that a certain category of imports sell in the Canadian market for less than their normal value, causing injury or harm to competing Canadian producers.

Once in place, ADDs/CVDs generally last five years, after which a Review is held to revisit the issue. During such a Review, the CBSA first determines the likelihood of presumed or continued dumping or subsidizing if the ADDs/CVDs are allowed to expire. Second, the CITT determines the likelihood of injury arising from such potential dumping or subsidizing, based on industry input.

Big Implications for the Canadian Power Transformers Industry

The CITT first imposed ADDs/CVDs on certain small power transformers from Chinese Taipei (21.3% of export price), and South Korea (73.1% of export price) in 2021. The expiry of these ADDs/CVDs could significantly impact the Canadian market.

As with all Reviews, the CITT will make its determination based on input from members of the power transformers industry – both foreign and domestic – who choose to participate.

How to Participate

Those interested in participating must act fast. Each party must file a Notice of Participation by October 16, 2026. For domestic producers, this is an opportunity to advocate for continued SIMA protections for the domestic industry. For foreign producers, it may be a chance to re-open the Canadian market or to seek an individualized product exclusion if these duties are renewed.

Takeaways

The CITT is reviewing the current SIMA duties on certain small power transformers from Chinese Taipei, and South Korea. The outcome of the Review depends on input from participating members of the power transformers industry, and both foreign and domestic producers may participate.

These Reviews are generally held every five years, so this is a rare chance to potentially have a significant impact on the Canadian industry. Interested parties must act fast. Each participant must file a Notice of Participation by October 16, 2026.

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