10/27/2011 02:35 EDT | Updated 12/27/2011 05:12 EST

Two Ontario firms allege Chinese exporters of steel sinks violate trade rules

OTTAWA - The Canada Border Services Agency said Thursday it will investigate the alleged dumping and subsidizing of some Chinese-made stainless steel sinks after receiving complaints from two Ontario companies.

"The complainants allege that the dumping and subsidizing of these goods are harming Canadian production by causing the following: loss of market share, loss of sales, price erosion, declining capacity utilization, reduction in employment and declining revenues, margins and profits," the agency said in a news release.

The companies making the allegations are Novanni Stainless Inc., of Coldwater, Ont., and Franke Kindred Canada Ltd., of Midland, Ont.

The Canadian International Trade Tribunal will begin a preliminary inquiry to determine whether the imports are harming Canadian producers and hand down a decision by Dec. 28.

The border services agency will investigate whether the imports are being dumped and/or subsidized and will make a decision by Jan. 25.

Dumping occurs when goods are sold to importers in Canada at lower prices than their selling prices in the originating market or at unprofitable prices.

Last April, the Canadian International Trade Tribunal announced imports of steel grating from China will be hit with anti-dumping and countervailing duties. The tribunal found the dumping and subsidizing of non-stainless steel grating from China had harmed Canadian companies.