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Old Trade Problem

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Bruce C

Feb 11, 2005
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Canada to slap surtax on some U.S. goods in trade fight
Last Updated Thu, 31 Mar 2005 15:31:42 EST
CBC News
OTTAWA - Canada plans to impose a 15 per cent surtax on imports of U.S. cigarettes, oysters, live swine and some types of fish starting May 1.

Ottawa said Thursday it is slapping on the duties to retaliate against the United States for its failure to comply with the World Trade Organization ruling on the Byrd Amendment.

The amendment allows U.S. producers to receive anti-dumping and countervailing duties collected by the U.S. government from foreign competitors.

The WTO has ruled the amendment is illegal, and in November 2004, the trade body gave Canada and the other co-complainants the authority to retaliate.

Canada's decision to retaliate came as the European Union took similar action. The EU is planning 15 per cent tariffs on U.S. paper, textiles, machinery and farm produce beginning May 1.

"For the last four years, Canada and a number of other countries have repeatedly urged the United States to repeal the Byrd Amendment," International Trade Minister Jim Peterson said.

"Retaliation is not our preferred option, but it is a necessary action. International trade rules must be respected," Peterson said in a release.

"We're disappointed that this step is being taken," said Richard Mills, spokesman for the Office of the United States Trade Representative.

"The United States is working to comply with the WTO decision regarding the Byrd Amendment," Mills said.

Bruce C

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