The Ottawa Construction News – July 2009 – PAGE A9
Thunder Bay company caught in anti-dumping duties dispute
GRK Fasteners threatens to leave Canada, taking 40 jobs
raised the duties to 170 per cent, effectively tion to simply switch to another supplier.” • The Minister who could be concerned
MARK BUCKSHON
– The Ottawa Construction News Editor
pricing GRK’s patented and already pre- “Some people may ask why GRK does about Canada’s international obligations
mium-priced screws out of the Canadian not produce its fasteners in North America,” is Minister Day.
A Thunder Bay fasteners supply business market. the company says. “In 2000 and 2001, GRK
known for its innovative, patented products, Walther decided to take the dispute to the actively searched for screw mills in North “Yet all of these gentleman have pointed
is threatening to move out of Canada – with public forums, purchasing newspaper ad- America and was unable to find a single the finger at one another in regards (to) who
its 40 jobs – if it cannot resolve a dispute vertisements in Ottawa, Toronto, and more supplier [in Canada or the United States] is in charge of the CBSA and SIMA duties,”
that has resulted in 170 per cent anti-dump- recently, in Northern Ontario Construction who was capable of making its products. Walther wrote.
ing duties on many of its imported products. News, with the blunt message: “Federal Machinery was outdated, the size ranges of- Todgham Cherniak says that “Canada
“There are no domestic substitutes for Government Inaction Threatens Canadian fered too limited, and the practical know- would not want the United States (or any
GRK’s patented products,” says GRK Fas- Jobs.” how was less than what was required. Fast other country) to treat Canadian suppliers in
teners President and co-owner Mirco The issue relates to complex trade regu- forward eight years and GRK’s product line this manner. Canada has spent tens of mil-
Walther, whose father Uli Walther originally lations, GRK’s need to have reliable, qual- has become even more specialized and more lions of dollars fighting similar behaviours
moved from Germany in 1990 to establish ity-focussed, technically-skilled difficult to produce.” by the U.S. antidumping and countervailing
North American operations for a German manufacturers for its products, and the com- In its advertisements, GRK says: duty officials in the Canada-United States
fastener company, which went bankrupt in pany’s unusual position as a Canadian-based “Stockwell Day, Peter Van Loan and Jim softwood lumber dispute.
1992. The sentiment about no domestic innovator and supplier of patented fasteners Flaherty have looked the other way, each of “This should be reason enough to ques-
substitutes echoed by customers and others to the lucrative U.S. market (less than three their departments claiming that it is the tion the actions of the CBSA. Next time,
which have responded to an online petition per cent of the company’s ultimate sales are other’s responsibility to oversee the CBSA Canada may not be able to claim unfair
posted by GRK. Many indicate that there are within Canada). (the Canadian Border Services Agency), treatment,” she said.
no domestic substitutes or comparable Anti-dumping duties are intended to which has imposed the anti-dumping duties. Walther says that Thunder Bay City
screws produced in Canada. eliminate unfair trading practices where an “Perhaps that is why the CBSA is able to Council and Mayor Lynn Peterson have for-
GRK, born out of the ashes of a defunct offshore supplier attempts to sell its prod- drive out Canadian companies. If the con- mally passed a motion pledging to support
business, designed, developed and patented ucts in Canada at prices below what it servative government would not act like an “kits quest for fair and equal treatment from
niche, high-end, patented fasteners (and charges domestic clients for the same prod- absentee landlord in regards to supervising the federal government.”
continues its research and development ac- ucts, or, where there is not domestic sales in the actions of the CBSA, Canadian jobs “Also, Liberal Industry critic Scott
tivities to this day to create new and better the foreign jurisidiction, it fails to price its would be preserved and created,” the ad Bryson has taken on the issue, with the help
screws). GRK does not have its own man- products at a level that would allow for re- says. of former Thunder Bay Rainy River MP
ufacturing operations given the skill re- covery of production and selling costs and In a note to NOCN, Walther says: Ken Boschcoff,” Walther says. “Current
quired to manufacture to its patented a reasonable profit, says GRK’s lawyer, “Our ads have resulted in several in- Thunder Bay Rainy River MP John Rafferty
specifications. GRK contracts out the man- Cyndee Todgham Cherniak of Lang Mich- quiries from Canadians who wanted more (ND) has also worked on the issue. Both he
ufacturing of larger screws to European pro- ener, LLP. information, as well as numerous voices of and Mr. Bryson have raised it in the House
ducers and the smaller varieties to Walther and Todgham Cherniak say it is support from the public. However the fed- of Commons. Unfortunately, the federal
carefully-selected highly-skilled Taiwanese ludicrous to think that GRK’s manufactur- eral government has been as apathetic to the government refuses to even look at the case
manufacturers, building an international ing supplier is not making a profit on the issue as ever. According to our lawyer: and appears to have no quarrel with losing
market for its products. customized products it sells to GRK. The • The minister in charge of the CBSA is 40 jobs in Thunder Bay.”
Until a recent administrative reinvetiga- case has consumed a small fortune in legal Peter Van Loan He can reverse the Media representatives for Prime Minis-
tion by the Canada Border Services Agency bills, even though GRK has never claimed SIMA duty. ter Stephen Harper’s office said they could
(CBSA) that is not mandated by the Special to be a low-cost fastener supplier. • The Minister who can grant a remission not provide comment as NOCN went to
Import Measures Act (SIMA), GRK thrived The anti-dumping duties haven’t fazed order is Minister Flatherty; press.
in Canada. GRK was able to successfully GRK’s low-end commodity priced competi-
sell its higher-priced patented screws even tors, Walther says. “Any importer of com-
after a competitor launched an antidumping modity fasteners such as drywall screws and
and countervailing duty complaint with the other ‘off the shelf’ products simply stopped
CBSA in 2004 and the Canadian Interna- importing screws from Taiwan and China www.Order
tional Trade Tribunal (CITT) made an injury and instead purchased screws from Vietnam,
finding resulting in the imposition of anti- Malaysia and other countries which were
Construction
dumping duties against GRK and other fas- not affected by the SIMA duties,” GRK says
teners importers. Despite expensive battles in a background report. “However, GRK
Documents
through the courts seeking redress and re- Fasteners, due to its all patented and high
view, on February 23, 2009, the CBSA quality line of products, was not in a posi-
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