Canada files WTO challenge of U.S. tariffs, vows to work with EU to oppose trade war

In addition to announcing retaliatory tariffs on C$16.6 billion worth of U.S. exports on Thursday, the Canadian government will also file a challenge to the Trump administration’s tariffs on Canadian aluminum and steel with the World Trade Organization.

“On top of the retaliatory measures announced yesterday, the Government of Canada today requested WTO consultations with the United States regarding its imposition of punitive tariffs on imports of steel and aluminium from Canada, and more generally, on the United States’ improper use of national security pretexts for protectionist purposes,” said Foreign Affairs Minister Chrystia Freeland in a statement released on Friday.

The statement went on to pledge that Canada will work with the European Union, who also filed a WTO challenge on Friday, as well as other “like-minded countries” to oppose the tariffs.

Hours after the United States said it would impose tariffs on aluminum and steel imports from Canada, Mexico and the European Union, Freeland stated that Canada would impose its own tariffs, which would go into effect on July 1 and will stay in effect until the United States lifts its own measures.

The Canadian government released two lists this week of American products, proposing a 25 per cent tariff on the first list and 10 per cent on the second. The lists included products such as iron, yogurt, coffee, wired stainless steel, whiskeys and felt-tipped pens.

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The U.S. has commonly justified the tariffs by citing national security concerns, which both Freeland and Prime Minister Justin Trudeau have staunchly dismissed.

“It is entirely inappropriate to view any trade with Canada as a national security threat to the United States. Canada is a safe and secure supplier of fairly traded steel and aluminum for U.S. defence and security. Canada is recognized in U.S. law as a part of the U.S. National Technology and Industrial Base related to national defence,” said Freeland in the statement.

Freeland also pledged to request the establishment of a NAFTA Chapter 20 panel to “address the United States’ violation of NAFTA rules.” The statement claims that such a request would also be filed on Friday.

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The Trump administration first implemented tariffs on steel and aluminum this past March, though granted Mexico and Canada temporary exemptions while in the midst of NAFTA negotiations. Earlier this week, the White House promptly announced that these tariffs would now extend to Canada and Mexico as well.

“Canada has treated our agricultural business and farmers very poorly for a very long period of time. Highly restrictive on trade!” he wrote. “They must open their markets and take down their trade barriers! They report a really high surplus on trade with us. Do timber and lumber in U.S.?” Trump said on Twitter on Friday.

Trudeau has slammed the move, and declared just hours later that Canada would match U.S. tariffs “dollar-for-dollar.” He’s referred to the action as “an affront” to the relationship between the U.S. and Canada, and told reporters on Thursday that it was “totally unacceptable.”

Trudeau also promised in an interview on Friday to work with the Canadian corporations impacted by the United States’ tariffs on steel and aluminum.

“I’ve assured them that we’re going to be working with them to make sure that Canadian jobs are protected and that Canadian workers and communities continue to do OK despite these unnecessary and punitive actions from the United States,” he said.

Freeland reiterated in her statement that these recently implemented tariffs are not only inconsistent with the country’s international trade obligations, but with WTO rules as well.

“Canada is a strong proponent of the rules-based international trading system, which ensures the predictability of global trade,” concluded her statement.

— With files from Reuters