Canada launches wide ranging trade dispute against the United States

Author: Greg Michalowski | Category: News

US trade representative Lighthizer responds

It was reported today, that Canada has launched a wide-ranging trade dispute against the US. In it they challenged the Washingtons use of anti-dumping and anti-subsidy duties.  

The dispute cited nearly 200 examples of US wrongdoing.  Most of the examples involved countries other than Canada.  

Anti-dumping and countervailing duties - punitive tariffs to restrict imports that are unfairly priced or subsidized in order to beat the competition - are at the heart of Washington's trade strategy. They are used to defend U.S. interests.  According to sources, the tariffs are allowed under WTO rules but they are subject to strict conditions.

The US has been under fire for years about the way it calculates unfair pricing, or dumping. The calculations the US uses has been "ruled to be out of line" with the WTO rulebook.

US trade representative Lighthizer has responded to the dispute by saying:

  • Canada's request for WTO consultation is a "broad and ill-advised attack on the US trade remedies system"
  • Canada's claims are unfounded and could only lower US confidence that Canada is committed to mutually beneficial trade
The US and Canada are mired in NAFTA talks which are not going all that well. 

The USDCAD is trading back toward its 200 hour MA at 1.2494. A move above would be more bullish (CAD bearish).


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