A Canadian complaint against US trade anomalies is currently on the table. The US is breaking trade rules according to Canada. Canada has made a complaint to the World Trade Organization regarding how the US checks products for below cost sale subsidies in the United States. A number of product types are involved, including dairy products, lumber and aircraft sales. Canada has claimed that the US is breaking international trade regulations.
North American Free Trade Agreement Negotiations
While this dispute is going on, the two countries are also attempting to renegotiate the North American free trade deal which is a bone of contention for President Donald Trump. This is not a good time for both countries to be discussing mutual trade agreements.
It is no secret that the Trump administration is attempting to renegotiate various trade agreements to the benefit of the US. However, there is a time and place for this, and perhaps this is a precursor to the NAFTA agreement that Trump wants renegotiation to benefit the US. So what is Canada’s gripe in all this?
Canadian Complaint Against US Trade Anomalies
The Canadian complaint against US Trade anomalies takes the form of a 32-page report. This report discusses issues such as improper calculation of rates. It also refers to the restriction on parties offering evidence to defend themselves against US claims. According to the Canadian Complaint, the US International Trade Commission is biased. This claim is based partially upon the fact that an even division of votes from the commission’s six members automatically result in a finding that supports the US view.
Since 2016, there has been a 46% rise in antidumping and countervailing duty investigations carried out by the US Commerce Department. Such investigations have largely been based on complaints from private companies, and they can lead to considerably increased tariffs. The Canadian complaint allows for a consultation period of 60 days. If the case has not been resolved within that time period then the complaint will be adjudicated on by a World Trade Organization panel.
Border Protection and Cross-Border Trade with the US
This is yet another argument between Canada and the US regarding cross-border trade. While many may take the US viewpoint, many disagree. It does appear to many that the Trump administration is focusing mainly on protecting its own borders. It is focusing less on coming to realistic trade agreements with countries outwith these borders! Countries even as close as Canada!
The US also has issues with China and other world countries. How the US administration handles these issues internationally remains to be seen. Particularly in the way it handles Issues with countries on its own borders, namely Canada and Mexico.