Ottawa Probes Allegation of Dumped Imports

Thursday, April 26, 2012 – (The Winnipeg Free Press) The Canada Border Services Agency says it has launched an investigation into allegations of dumping liquid dielectric transformers from South Korea after complaints filed by CG Power Systems Canada Inc. of Winnipeg and a Quebec company.

Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter's domestic market or at unprofitable prices.

Transformers are used to increase, maintain or decrease electric voltage in high-voltage transmission and distribution systems.

The Canadian International Trade Tribunal will now begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by June 22, 2012. While the tribunal is examining the question of injury, the CBSA will investigate whether the imports are being dumped and will make a preliminary decision by July 23, 2012.

CG Power System is one of only three facilities in North America capable of building large, 500-kilovolt transformers. It employs about 330 people here.

The Winnipeg plant is owned by a company called Crompton Greaves, based in Mumbai, India and has 36 plants around the world, in Belgium, Hungary, Indonesia, Ireland, France, the U.K. and the United States and more than 20 in India. It has more than 8,000 employees worldwide.

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