Canada has filed a complaint with the World Trade Organization against the US, highlighting a slew of measures relating to anti-dumping and anti-subsidy duties it says are inconsistent with America’s WTO obligations.
The challenge by Canada, filed on 20 December and published last week, comes ahead of the sixth round of renegotiation talks on the North American Free Trade Agreement (NAFTA) , which are set to take place from 23-28 January in Montreal, Canada.
Set out in a 32-page document, Canada offers 200 examples of alleged US wrongdoing related to its trade with Canada, as well as America’s other trading partners such as China, the European Union (EU), Brazil and India.
It highlights technical details of the US trade rulebook, arguing that the country’s entire process for imposing anti-dumping and countervailing duties violates global trade rules. It cites five reasons, saying the US levies penalties beyond what is allowed by the WTO, it improperly calculates rates, unfairly declares penalties retroactive, limits evidence from outside parties, and has a tilted voting system in domestic trade panels.
The products listed in the document that Canada believes are affected by the US’s unfair trade practices include certain polyester staple fibre from the Republic of Korea, Polyethylene Terephthalate Resin (PET) from India, and certain amorphous silica fabrics from China.
In response, US Trade Representative Robert Lighthizer says Canada’s new request for consultations at the WTO is “a broad and ill-advised attack” on the US trade remedies system.
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By GlobalDataHe says Canada’s demands undermine confidence in its commitment to mutually beneficial trade, and would only damage its own interests if they were realised.
“Canada is acting against its own workers’ and businesses’ interests. Even if Canada succeeded on these groundless claims, other countries would primarily benefit, not Canada. For example, if the US 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 nearly $9bn in exports of steel and aluminum products and more than $2.5bn in exports of wood and paper products. Canada’s claims threaten the ability of all countries to defend their workers against unfair trade. Canada’s complaint is bad for Canada.”
Under WTO rules, the US has 60 days to try to settle the complaint, or Canada – which sends 75% of its goods exports to the US – could ask the WTO to adjudicate.
Talks between Mexico, Canada and the US to renegotiate the terms of the North American Free Trade Agreement began in August last year and are still underway, although concerns have been expressed by the US at the lack of progress.
The fifth round of renegotiations concluded in late November with Lighthizer observing “no evidence that Canada or Mexico are willing to seriously engage on provisions that will lead to a rebalanced agreement.”
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