(International Trade Canada)
The Government
of Canada has announced that it will retaliate against the United States in light of its failure to comply with the World Trade Organization (WTO) ruling on the Byrd Amendment. Following extensive
consultations with domestic stakeholders, Canada will impose 15 per cent surtax on U.S. live swine, cigarettes, oysters and certain specialty fish, starting May 1, 2005.
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 that 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 found 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 Minister 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 per cent 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. |
