Canada takes USA to WTO in wide-ranging trade complaint

Randolph Lopez
January 14, 2018

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

The irony here is that Canada is making the same complaint about the United States. It also accuses the United States of using a trade-panel voting system that's biased against foreigners. This decision appears even more fraught given the US administration's critical stance on the WTO; the Trump administration feels as if world trade rules are stacked against them.

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)?

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. This goes for trade negotiations with China, with Comprehensive Progressive Trans-Pacific Partnership parties, and with the United States.

He added that Canada is against its own interests and would not benefit even if the case succeeds.

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.

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However, Canada's strategy is "particularly unwise", Warner told Xinhua.

The Canadian government has launched an immediate complaint before the World Trade Organization, challenging Washington's use of anti-dumping and anti-subsidy duties on newsprint.

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 USA firms. "This is effectively Canada bringing a dispute on behalf of all exporters in the world - the Europeans, Japan, China - because they're making a systemic challenge".

Canada said US procedures broke the WTO's Anti-Dumping Agreement, the Agreement on Subsidies and Countervailing Measures, the General Agreement on Tariffs and Trade, and the Understanding on Rules and Procedures Governing the Settlement of Disputes.

"For example, if the USA removed the orders listed in Canada's complaint, the flood of imports from China and other countries would negatively impact billions of dollars in Canadian exports to the United States, including almost $9 billion in exports of steel and aluminum products and more than $2.5 billion in exports of wood and paper products".

On Wednesday the country requested that the World Trade Organization step in to review certain US trade actions and whether they're in accordance with its obligations as a member of the WTO.

Other reports by GlobalViralNews

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