Canada mounts WTO challenge amid worries of US NAFTA split
Canada mounts WTO challenge amid worries of US NAFTA split
Canada Launches Trade Dispute Against US in WTO, Washington Strikes Back
12 January, 2018, 23:13
"Canada's claims are unfounded and could only lower USA confidence that Canada is committed to mutually beneficial trade", Lighthizer said in a statement.
In a statement in response to Canada's move, U.S. Trade Representative Robert Lighthizer said, "Canada's new request for consultations at the WTO is a broad and ill-advised attack on the U.S. trade remedies system".
Canada lodged a World Trade Organization complaint accusing the USA of regularly breaching worldwide trade laws through various countervailing and anti-dumping duties, citing almost 200 examples spanning several decades.
"Canada and the US enjoy one of the most productive trading relationships in the world".
As with the softwood lumber dispute, workers on both sides of the border are harmed by the trade war.
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.
Yet while "the rest of the world is trying to keep the U.S. engaged in that dispute-settlement system", Canada's generic complaint against the United States is "counterproductive", said Warner.
"The government is increasingly sure about this...it is now planning for Trump to announce a withdrawal", one unnamed source reportedly told Reuters.
"Today's preliminary decision allows USA producers to receive relief from the market-distorting effects of potential government subsidies", said Ross in a statement, instructing Customs and Border Protection agents to begin collecting cash deposits from paper importers at the border.
A spokesman for Foreign Affairs Minister Chrystia Freeland said this challenge is tied to Canada's latest fight with the United States over softwood lumber. Sands, who said the move may have come because Canadian trade negotiators and politicians believe the strategy of playing nice with the Trump administration has not paid dividends.
If these countries can defend and promote their own interests, why shouldn't Canada?
Anticipating an imminent USA retreat from NAFTA, the Canadian government has made a decision to go on the offensive in managing its trade relations with our Southern neighbor.
"This sends a signal to the Trump administration that if NAFTA is going to end, and we are going to be treated no better than other countries in the world, then this is the kind of treatment you can expect to receive in return", said Mr. Bown, a former official in the Obama administration and at the World Bank.
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.
The irony here is that Canada is making the same complaint about the United States.
Canada's complaint coincides with separate trilateral negotiations to revise NAFTA, which created an open trading system between the United States, Canada and Mexico.
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