Canada Targets US Trade Remedies With Massive WTO Case

Canada Launches Trade Dispute Against US in WTO, Washington Strikes Back

Canada Launches Trade Dispute Against US in WTO, Washington Strikes Back

The action comes amid disputes between the two countries over areas such as dairy, aircraft sales and lumber as well as efforts to renegotiate the North American Free Trade Agreement. Even if Canada succeeded with their claims, other countries would primarily benefit, not Canada, Lighthizer argued.

US Trade Representative Robert Lighthizer said in a statement that Canada's complaint is a "broad and ill-advised attack on the US trade remedies system".

"Canada's claims are unfounded and could only lower US confidence that Canada is committed to mutually beneficial trade", Lighthizer said in a statement.

Ottawa's 32-page complaint packs a wallop, accusing the US of violating WTO rules in anti-dumping and countervailing duty probes focused not.

In a statement, Foreign Affairs Minister Chrystia Freeland said, "This WTO action is part of our broader litigation to defend the hundreds of thousands of good, middle class forestry jobs across our country".

The 32-page filing not only accuses the USA of improperly imposing duties on Canadian products but also on those of other trading partners, including Brazil, China, EU and India.

"These rates tabled lby the USA on uncoated groundwood paper represent the third action that stands to hurt hard working men and women in our mill communities across Canada", says Derek Nighbor, CEO, Forest Products Association of Canada.

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Trade relations between the countries have experienced some stumbling points as the sides are deadlocked in unsuccessful negotiations over NAFTA, the trade pact signed by the US, Canada, and Mexico in 1994 and based on the fundamental principle of tariff-elimination across North America.

Canadian officials did not make an announcement with the release of the WTO filing but did respond to the newsprint duties. But he questioned the strategic logic of antagonizing the Trump administration in the midst of NAFTA talks. "We're about the start negotiations over NAFTA in Montreal".

Though Canada certainly has plenty of domestic interest in pushing against the trade policies of its southern neighbor, its filing is about more than its own trade disputes. We know that when unbiased entities review these unfair trade practices, they have found in Canada's favour.

The complaint is "certainly not typical", said Greg Kanargelidis, an global trade lawyer at Blake, Cassels & Graydon LLP.

Canada's complaint with the WTO is a request for consultation, which formally initiates a dispute in the WTO.

Indeed, the Trump administration wasted no time expressing its displeasure.

In almost all cases, duties were imposed after the Commerce Department and ITA investigated charges by United States companies or industries, which claim to have been harmed by unfair import competition.

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