WASHINGTON : Canada has filed a
sweeping trade case against the United States at the World Trade Organization,
lobbing a diplomatic grenade at the Trump administration’s “America First”
approach amid an increasingly embattled trade relationship between the
longstanding North American allies.
The trade case could exacerbate tensions between the two nations, which have
frayed in recent months as the countries wrestle with trade disputes and
attempts to renegotiate the North American Free Trade Agreement. Canada’s case
challenges the United States’ use of tariffs to punish unfair trade practices
and protect its markets, saying those actions violate World Trade Organization
rules.
The case could expand into a multinational trade dispute given that Canada, a
champion of global agreements, filed it in a way that allows other countries to
join. The 37-page document outlines numerous problematic trade actions that it
says the United States has taken against China, South Korea, Japan and Germany.
The case, which was filed on Dec. 20 and made public on Wednesday,
centers on the punitive tariffs that the United States imposes when it finds
other countries guilty of subsidizing their products or of selling them abroad
at unfairly low prices, a practice known as dumping. The United States has lost
cases in the World Trade Organization over this system, which differs
substantially from that of many countries.Robert E. Lighthizer, the United
States trade representative, called Canada’s action “a broad and ill-advised
attack” on the American trade system.
“U.S. trade remedies
ensure that trade is fair by counteracting dumping or subsidies that are
injuring U.S. workers, farmers and manufacturers,” he said in a statement on
Wednesday. “Canada’s claims are unfounded and could only lower U.S. confidence
that Canada is committed to mutually beneficial trade.”Canada has borne the
brunt of several United States trade actions, including a decades-long dispute over lumber and recent cases againstBombardier airplanes and Canadian newsprint.“There are now billions of dollars
of Canadian exports to the U.S. that are potentially subject to these
restrictions,” said Chad P. Bown, a senior fellow at the Peterson Institute for
International Economics in Washington. “That’s what this dispute is all about.”
The case could take years to work its
way through the World Trade Organization, Mr. Bown said, but could eventually
help Canada combat the types of trade actions the United States is increasingly
bringing. It could also help Canada protect itself if the United States
withdraws from Nafta or significantly alters key parts of the trade pact that
provide an important channel for Canada to appeal trade disputes between the
countries.
In a statement, Canada’s foreign minister, Chrystia Freeland, said the W.T.O.
filing was linked to a long-running dispute over Canadian lumber exports.“This
W.T.O. action is part of our broader litigation to defend the hundreds of
thousands of good, middle-class forestry jobs across our country,” she said.
“We continue to engage our American counterparts to encourage them to come to a
durable negotiated agreement on softwood lumber.”
Source: Daily Freeman, U.S.A Friday, 12 January 2018