Canada launches anti-dumping and countervailing investigations against Chinese mattresses

     According to the latest news on the official website of the Canada Border Services Agency (CBSA), on February 24, CBSA officially launched an investigation into whether mattresses from China are suspected of violating anti-dumping and countervailing duties according to the "Special Import Measures Act"!

     The cause is a complaint to the CBSA by Restwell Mattress Co., Ltd., a local mattress manufacturer and sleep product wholesaler, and United Steelworkers Canada, the largest private sector union in North America. The reason is that local players have suffered substantial damage due to an increase in the number of dumped and subsidized imports from China. These involve price reductions, market share encroachment, declining sales and lower capacity utilization, among others. The mattress market in Canada is estimated to be about $800 million annually. The Canadian International Trade Tribunal, CITT, will begin a preliminary investigation to determine whether imported mattress products harm Canadian manufacturers. At the same time, the CBSA has launched an investigation into whether imported products are being sold at unfair prices and/or subsidized in Canada, and a preliminary decision will be issued by May 25, 2022, when a temporary tariff strategy may be used.

According to the additional product information provided by CBSA, the mattresses involved in the investigation were originated or exported from China, and the product categories included mattresses, mattress covers, and mattresses incorporated into furniture (ie, beds used for sofas, Murphy beds, etc. pad).

In particular, it should be noted that the following mattress types are not included in the scope of the investigation:

1. Pet mattress;

2. Mattresses incorporated into furniture and subject to a decision by the Canadian International Trade Tribunal in NQ-2021-002:

3. Camping mattress;

4. Inflatable beds, water beds and air mattresses;

5. Custom mattresses for boats, RVs or other vehicles;

6. Stretcher or gurney mattress;

7. Mattress base;

8. Tufted futon mattresses with innersprings or foam;

9. Mattress covers less than three inches thick

     This investigation will be a very big shock to mattress companies exporting to Canada, as well as mattress importers in Canada. Coupled with the fact that Canada imposed anti-dumping duties on upholstered seating furniture imported from China and Vietnam last year, the entire Canadian furniture market is bound to see a wave of price increases in the near future. Consumers are undoubtedly the biggest victims. Canadian furniture prices have risen by more than 10 per cent in recent months, already the biggest gain since 1982, according to Statistics Canada.