Canada complains to WTO about United States trade duties

Canada complains to WTO about United States trade duties

Canada complains to WTO about United States trade duties

"Canada's new request for consultations at the WTO is a broad and ill-advised attack on the USA trade remedies system", US trade czar Robert Lighthizer said in a statement. It also accuses the United States of using a trade-panel voting system that's biased against foreigners.

Many experts have criticized the Canadian government for its timing.

She says Canada will bring some new, "creative" ideas to the sixth round of NAFTA negotiations later this month in Montreal, in response to some of the "more unconventional" USA proposals.

They fear that it could ultimately prompt United States President Donald Trump to invoke NAFTA's article 2205, notifying partners of intent to withdraw from the pact after a period of six months. "Canada and the US share a longstanding and important relationship, but in the face of these unfounded trade actions it's important that our government defends Canada's interests".

The complaint covers actions taken against not just Canada but countries all around the world, from Japan to South Africa.

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A massive question is left unanswered: why did Canada file this request at the WTO while the NAFTA renegotiations are underway (and nothing short of arduous)?

"Canada and the USA enjoy one of the most productive trading relationships in the world".

Canada has had it up to here with the United States and its trade remedy measures.

It also might result in a flood of imports from other countries - if the complaint successfully have American tariffs removed - and cost Canada billions of dollars in exports to the US, Lighthizer said. Trying to get as much as possible from the process by using all political and legal means available is simply part of the process.

However, Canada's strategy is "particularly unwise", Warner told Xinhua. "We're about the start negotiations over NAFTA in Montreal". Chapter 19 allows the parties to bypass the national judicial system to challenge countervailing and anti-dumping duties.

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Across the negotiating table, the United States argues that chapter 19 is unnecessary because the WTO exists, (it did not when NAFTA came into force) and because the United States system is not biased in favour of US firms.

Canada believes Mr. Trump's threat is serious: One source said Ottawa was ready for the President to pull the plug last fall and was surprised when the United States instead extended the negotiations to March.

US Trade Representative Robert Lighthizer has described Canada's move as "ill-advised attack".

Canada claims the guilty of breaking three basic WTO rules: the anti-dumping agreement, another on subsidies and a third on understanding the settlement of disputes mechanism.

But it also goes well beyond Canada-U.S. softwood lumber spats, citing alleged global trade breaches by the U.S. against a host of imported products, from Argentine lemon juice to frozen shrimp from India.

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