Canadian Foreign Minister Chrystia Freeland on April 9 said the country is considering adding goods to its list of taxable retaliation to increase pressure on the US, forcing it to abolish import duties on aluminum and steel.
In July last year, Canada responded to the United States by imposing retaliation taxes on US $ 16.6 billion (US $ 12.5 billion) of US goods, including orange juice, tomato sauce and Corn whiskey, after US President Donald Trump imposed a 25% import tax on steel and 10% for aluminum.
Speaking to reporters in Washington on April 8, Canadian Ambassador to the United States, David MacNaughton said a significant amount of US agricultural products such as apples, pork and wine could be added to the taxable list. retaliation.
However, he said the move should not be interpreted as a escalation of trade tension but rather to compensate for the shortage, when Canada abolished taxes on goods worth more than $ 285 million in Canada.
Last month, Freeland said Canada would not approve the North American Free Trade Agreement version 2.0 with the US and Mexico until the import tax that the US struck on aluminum and steel was lifted because this was against the rules. and unfair.
Also related to the trade relations between Canada and the US, the World Trade Organization (WTO) on April 9 ruled in part to support Canada in arguing with the US over the anti-dumping tax. Imported softwood lumber.
A committee of the WTO Dispute Settlement Authority ruled that in the tax calculation method, the US acted in conflict with the international antidumping agreement.
[Canada wants the US to remove aluminum and steel taxes in NAFTA approval process]
According to the ruling, the WTO dispute settlement committee agreed with Canada that with the US use of the current tax calculation method "acts inconsistently" with an international agreement on anti-dumping.
However, the ruling overrides some of Canada's other arguments, including accusations of how to calculate the margin of dumping by the "zeroing" method of US violating international trade regulations. Instead, the ruling agrees with the US that this calculation is allowed to be used in case of suspicion of dumping.
The "zeroing" formula is the most controversial method in practice of applying anti-dumping measures in the world, especially the US - the country often uses this method when calculating dumping margins.
This calculation is said to be detrimental to exporters due to higher import tariffs. Canada and the US will have 60 days to appeal.
The two countries disagreed on soft lumber for more than three decades and Canada sued the US on the WTO in November 2017, after the US Department of Commerce imposed a tax of more than 18% on this imported product.
It is estimated that there are about 230,000 Canadian workers working in the forestry sector and up to 70% of Canada's sawn timber exported to the US market.
Le Minh (VNA / Vietnam +)