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Canada to impose surtaxes
on US products for its failure to repeal
Byrd Amendment
The Government of Canada announced today
that it will retaliate against the United
States in light of its failure to comply
with the World Trade Organization ruling
on the Byrd Amendment.
Following extensive consultations with domestic
stakeholders, Canada will impose a 15-percent
surtax on U.S. live swine, cigarettes, oysters
and certain specialty fish, starting May
1, 2005. Today, the Commission of the European
Union has proposed imposing retaliatory measures
as trade sanctions on certain products from
the United States. Canada continues to cooperate
closely with all seven WTO members who have
received authorization to retaliate. These
countries may also exercise their retaliatory
rights over the next few months.
“For the last four years, Canada and
a number of other countries have repeatedly
urged the United States to repeal the Byrd
Amendment,” said International Trade
Minister Jim Peterson. “Retaliation
is not our preferred option, but it is a
necessary action. International trade rules
must be respected.”
Over two years ago, the Byrd Amendment,
which allows U.S. producers to receive anti-dumping
and countervailing duties from foreign competitors,
was determined by the WTO to be inconsistent
with U.S. trade obligations. In November
2004, the WTO gave Canada and the other co-complainants
the authority to retaliate.
“As large trading nations, let us
not forget that the world is watching,” said
Peterson. “We must send a clear message
by way of our actions.”
The Minister emphasized that the Canada-U.S.
overall trade relationship is as strong as
ever.
“Ninety-six percent of it works and
works well and should be celebrated, but
both sides lose from such disputes. We must
put an end to them,” he added.
Through consultations,
Canada has made efforts to focus on products
with alternative supply
sources and to avoid products that are inputs
to Canadian manufacturing. Canada’s
current retaliation level is $14 million.
The Government will review the products each
year against the fluctuating nature of Byrd
disbursements.
Foreign Affairs Canada and International
Trade Canada
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