Under the WTO implementing legislation Canada and the USA are moving closer together in their requirements. The USA is adopting some Canadian practices where Canadian practice was more restrictive, for example, the treatment of profits in related party transactions. Canadian practice with respect to the use of unprofitable sales in calculating normal values will be closer to Commerce practice. It bears repeating that the most significant and important difference between Canadian and U.S. practice is in the enforcement regimes. Revenue Canada operates a prospective enforcement system which usually permits exporters to adjust prices to eliminate dumping so that payment of antidumping duties is not necessary.
Periodic reviews focus on a relatively brief, recent period to establish normal values.
Retroactive application of antidumping duties in Canada is rare and would normally result from misrepresentation or the exporter's failure to report an important change in circumstances. There are sound policy reasons why Canada as a large, but sparsely populated, trade-dependent country should avoid excessively burdensome requirements and harassment in its administrative practice and procedures. The Government of Canada must encourage and promote the competitiveness of all Canadian firms at home and in export markets. Security of access to export markets and diversification of exports are very important to Canada. Many Canadian manufacturers and exporters are more dependent on imported components and materials than their U.S. competitors.