Canada Launches Global Trade Complaint Against US Over Use of Duties

Canada Launches Global Trade Complaint Against US Over Use of Duties

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

The WTO revealed on Wednesday that Canada had filed a complaint last month accusing the United States of unfairly imposing countervailing and anti-dumping duties, not only on Canadian softwood lumber but also on goods from many other countries.

And yesterday, a day after the paper tariffs were announced, a complaint against the us that the Canadians had lodged with the World Trade Organization was made public.

However, he explained that US President Donald Trump's administration "dislikes" the WTO's dispute-settlement body and believes that countries rely on it "inappropriately to achieve results they can't achieve through negotiations".

Details of the WTO filing released Wednesday referenced almost 200 instances Canada claims the Americans breeched global trade rules by imposing anti-dumping and anti-subsidy duties.

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" US proposals.

Ottawa's ramped-up efforts come amid an increasingly fragile trade relationship between the two countries.

The new complaint Canada has filed with the World Trade Organization is an unfriendly gesture between two countries that are each other's biggest trading partner and it appears intent on making the case that the United States has diverged from the rules-based worldwide order that has been built up over successive multilateral trade deals.

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Lighthizer argued that a win for Canada would mainly help other countries like China, which would take any opportunity to dump their low-cost imports into the US market.

The Trump administration has begun vigorously enforcing United States trade laws by backing U.S. companies and industries that complain of harm from unfair trade by imposing duties on imports.

Canada's first motivation for going to the WTO is to show the Americans (and the rest of the world) that it will not cave in to its larger economic partners when they put undue pressure on Canadian economy and businesses. But he questioned the strategic logic of antagonizing the Trump administration in the midst of NAFTA talks.

"This WTO action is part of our broader litigation to defend the hundreds of thousands of good, middle class forestry jobs across our country", said Chrystia Freeland, Canada's minister of foreign affairs, in a statement".

"Even if Canada succeeded on these groundless claims, other countries would primarily benefit, not Canada", he added, suggesting also that "Canada's complaint is bad for Canada".

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

NAFTA has been heavily criticized by Trump, who called it the "worst deal in United States history" and warned that he might scrap it.

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