Canada Goes Toe-to-Toe With US Trade Policy

Canada Goes Toe-to-Toe With US Trade Policy

Canada Goes Toe-to-Toe With US Trade Policy

He further called Canada's accusations "unfounded" and said that they "could only lower United States confidence" that its neighbor is committed to mutually beneficial trade.

The irony here is that Canada is making the same complaint about the United States. "I'd think you're giving more ammunition to an administration that has taken the position that the WTO and bi-national panels infringe on the sovereignty of the United States".

"It's (saying), 'The entire way in which the USA - you - are conducting your anti-dumping, countervailing procedures, is wrong,"' said Chad Bown, a trade expert at Washington's Peterson Institute.

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 move drew a sharp rebuke from Donald Trump's trade czar and came amid reports that Canadian government officials say there's an increasing likelihood the president will withdraw from the three-nation North American Free Trade Agreement.

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

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

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After reports Wednesday that Canada now considered it inevitable that Trump would try to withdraw the USA from the treaty, one Canadian official with knowledge of the NAFTA negotiation offered a more nuanced position in an email to the Post, saying, "it's not accurate to say we're convinced", but that there was "no question we think there's a chance it could happen". Chapter 19 allows the parties to bypass the national judicial system to challenge countervailing and anti-dumping duties.

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.

With its WTO filing, Canada is forcing the United States to put its logic to the test.

Canada-U.S. trade lawyer Mark Warner said the complaints might have some merit, and Canada is well within its rights to complain to the WTO.

"Canada considers the measures relating to US anti-dumping or countervailing duty investigations, reviews or other proceedings are inconsistent with USA obligations under the WTO's Anti-Dumping Agreement, the Agreement on Subsidies and Countervailing Measures, the General Agreement on Tariffs and Trade 1994 and the Understanding on Rules and Procedures Governing the Settlement of Disputes", the document's preamble states. "Canada's forestry sector is following the rules and we're confident that we will prevail-again-in worldwide tribunals".

As with the softwood lumber dispute, workers on both sides of the border are harmed by the trade war.

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