TORONTO – Canada has launched a wide ranging attack on U.S. trade practices with an international complaint over Washington’s use of punitive duties. The U.S. called it ill-advised.
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The complaint ramps up tensions amid talks on renegotiating the North American Free Trade agreement.
A senior government official said Canada is under no illusion that there is a risk President Trump might pull the U.S. out of the trade agreement, while another senior official said the government is preparing for that possibility while not being certain it will happen. Both officials spoke on condition of anonymity because they were not authorized to speak publicly.
Canada is asking the World Trade Organization to examine the use of duties in the United States, alleging they violate international law. The complaint was filed last month but released Wednesday. Canada cited 122 cases where the U.S. unfairly imposed duties on foreign countries, not just Canada.
The U.S. just announced duties of up to 9 percent on Canadian paper. It follows a series of similar penalties as the U.S. alleges unfair trade practices by Canada in the form of softwood lumber and Bombardier subsidies.
U.S. Trade Representative Robert Lighthizer said in a statement that Canada’s complaint is a “broad and ill-advised attack on the U.S. trade remedies system.” He said it would damage Canada’s own interest and only benefit China.
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“Canada’s claims are unfounded and could only lower U.S. confidence that Canada is committed to mutually beneficial trade,” Lighthizer said. “Even if Canada succeeded on these groundless claims, other countries would primarily benefit, not Canada. For example, if the U.S. 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.”
