Economy

U.S. violated trade rules, Canada claims after Bombardier row

U.S. violated trade rules, Canada claims after Bombardier row

The complaint challenges the ways that the USA investigates products for subsidies and below-cost sales. It also accuses the USA of using a trade-panel voting system that's biased against foreigners.

Thirty-two-page complaint by Canada cites U.S. investigations of products from countries around the world, with decisions that date back to 1996.

Canada has launched a wide-ranging trade complaint against the United States, the World Trade Organization said on Wednesday, in a dispute that Washington said would damage Canada's own interests and play into China's hands.

"Canada considers the measures relating to USA anti-dumping or countervailing duty investigations, reviews or other proceedings are inconsistent with US 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 has launched a wide-ranging complaint with the World Trade Organisation against the United States, accusing it of breaking worldwide trade rules.

"Canada's claims are unfounded and could only lower US confidence that Canada is committed to mutually beneficial trade", Lighthizer said in statement.

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WASHINGTON-Canada has launched a wide-ranging attack against American trade practices in a broad worldwide complaint over that country's use of punitive duties - a move the U.S.is calling "broad and ill-advised". He explained, "Even if Canada succeeded on these groundless claims, other countries would primarily benefit, not Canada".

"I think Trump will give the six-month notice required under NAFTA because he will see it as a negotiating tactic", Wiseman said.

"Canada and the US enjoy one of the most productive trading relationships in the world", Yurkovich said in a statement.

Put another way, Canada may be taking on the United States on behalf of the rest of the world, whether by default or construction. The U.S.is imposing duties of up to nine per cent on Canadian paper, following similar penalties against Bombardier and softwood lumber, over what the U.S. alleges to be unfair Canadian trade practices.

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. "Trump prefers bilateral negotiations with each of Canada and Mexico".

The smaller northern neighbour could be making a point about NAFTA, he said: that if Canada loses free trade, and its dispute-settlement bodies, it will use global means to fight its battles. "Canada's complaint is bad for Canada".

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