U.S. Trade Representative Robert Lighthizer slammed Canada’s move to file a broad complaint with the World Trade Organization challenging the United States’ anti-dumping and anti-subsidy duties.
Canada’s action, filed last year and made public Wednesday, comes as the two countries are preparing the final stage of renegotiations on the North American Free Trade Agreement.
Lighthizer said Canada’s charges were false and implied that they were made in bad faith. “Canada’s new request for consultations at the WTO is a broad and ill-advised attack on the U.S. trade remedies system. U.S. trade remedies ensure that trade is fair by counteracting dumping or subsidies that are injuring U.S. workers, farmers and manufacturers. Canada’s claims are unfounded and could only lower U.S. confidence that Canada is committed to mutually beneficial trade,” he said in a statement Wednesday.
Anti-dumping and countervailing duties are used by the U.S. frequently to restrict imports that it says are unfairly subsidized or otherwise boosted by their home country. Canada’s complaint says they violate the WTO’s anti-dumping rules and the rules for settling disputes, among other charges.
Lighthizer said that if the complaint were to succeed, it would threaten the ability of any country to defend itself against unfair trade practices. Canada’s complaint is therefore against its own interest, he 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, including nearly $9 billion in exports of steel and aluminum products and more than $2.5 billion in exports of wood and paper products,” Lighthizer said.
The sixth round of NAFTA talks are scheduled to begin Jan. 23 in Montreal. A key point of contention during the NAFTA renegotiations is Canada’s policies governing timber, dairy and poultry, which the U.S. says amounts to unfair subsidies. The Trump administration last year slapped tariffs on the lumber used to make houses, and Trump has talked up the cause of U.S. dairy producers.
