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Canada complains to WTO, says U.S. breached trade rules

Canada complains to WTO, says U.S. breached trade rules

In what reads like the pee dossier of trade policy, Canada accuses the United States of 188 different violations of World Trade Organization policies going back to the mid-1990s.

If the United States decides to continue recognizing the WTO's dispute-settlement mechanism to decide on the fairness of USA trade remedies, then a decision in Canada's favour would support Canada's claim that the US system is biased, making it easier to argue in favour of keeping chapter 19. Canada's claims threaten the ability of all countries to defend their workers against unfair trade.

"We continue to engage our American counterparts to encourage them to come to a durable negotiated agreement on softwood lumber", Freeland said in an emailed statement.

Yet while "the rest of the world is trying to keep the USA engaged in that dispute-settlement system", Canada's generic complaint against the United States is "counterproductive", said Warner. U.S. Trade Representative Robert Lighthizer hinted at such a prospect when he mentioned in a statement that "Canada's claims are unfounded and could only lower U.S. confidence that Canada is committed to mutually beneficial trade".

The file was made public on Wednesday and cites almost 200 complaints by Canada against the US, many of which include Canada's trading partners such as China, India, Brazil, and the European Union. He explained, "Even if Canada succeeded on these groundless claims, other countries would primarily benefit, not Canada".

The irony here is that Canada is making the same complaint about the United States.

If Canada is successful at the WTO, the United States may have to change the way it approaches trade remedies cases.

For example, Canada says that the United States not only applied anti-dumping tariffs "in excess of WTO-consistent rates" but also miscalculated subsidies used to determine the level of penalties.




"Many more jobs are at risk in the United States when there is not enough lumber to build houses or paper to print newspapers and books".

The US just announced duties of up to 9 percent on Canadian paper.

"Today's preliminary decision allows US 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.

The complaint marks Canada's most exhaustive attempt yet to counter recent import duties imposed by the USA, particularly on Canadian softwood lumber products.

Freeland has called the Commerce Department's duties on softwood producers "unfair and unwarranted".

The United States has been under fire for years about the way it calculates unfair pricing, or dumping.

Trump has also upset Canada by slapping punitive tariffs on Canadian softwood lumber exports, leading to a challenge by Ottawa at the WTO and the North American Free Trade Agreement.


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