What's the strategy — Canada's WTO broadside

What's the strategy — Canada's WTO broadside

Canada says the USA violated 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. "In the past Canada has filed one-off cases in relation to a specific product or dispute such as softwood lumber". "It's nearly like Canada is fighting this on behalf of the worldwide community". The disputes over paper, lumber, aerospace, and now trade in general are occurring just as the countries prepare to meet in Montreal later this month for a potentially pivotal round of NAFTA negotiations.

The 32-page filing not only accuses the US of improperly imposing duties on Canadian products but also on those of other trading partners, including Brazil, China, EU and India.

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 USA market.

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". "I wonder why would you bring this complaint now".

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

Canada said the new US duties imposed January 10 broke the World Trade Organization's (WTO) 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.

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He called it surprising that Canada is taking its action against an administration that already dislikes the WTO, and has sabotaged the appointment of new WTO judges.

Kevin Dietsch/SIPA/NewscomAmerica's trading relationship with its northern neighbor continues to deteriorate as the US and Canada butt heads over the Trump administration's protectionism. He explained, "Even if Canada succeeded on these groundless claims, other countries would primarily benefit, not Canada".

"Canada is acting against its own workers' and businesses' interests", he said.

If the USA removed the orders in the complaint, Lighthizer said Canadian exports would be negatively impacted, including steel and aluminum and wood and paper products, Lighthizer said in his statement.

"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".

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