Reply #37: Canada to slap surtax on some U.S. goods in trade fight [View All]

[UpInArms]

http://www.cbc.ca/story/business/national/2005/03/31/tradefight-050331.html

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.

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