(CLO) The Canadian government announced that it will file a lawsuit against the United States at the World Trade Organization (WTO) and other international trade organizations to protest the 25% import tax that Washington has just imposed on most goods from Canada.
A senior Canadian government official called the Trump administration's decision "illegal and unreasonable," and said Ottawa would take strong retaliatory measures.
US President Donald Trump, Canadian President Trudeau, and Mexican President Enrique Peña Nieto sign the US-Mexico-Canada Free Trade Agreement during a ceremony in Buenos Aires, on the sidelines of the G-20 leaders summit on November 30, 2018. Photo: Ron Przysucha
The statement came just a day after Canadian Prime Minister Justin Trudeau announced retaliatory tariffs of 25% on US goods, in response to President Donald Trump's hardline trade policies.
According to the Trump administration’s decision, from February 6, the US will impose a 25% tax on most goods imported from Canada. Energy products such as oil, gas and electricity will be subject to a lighter tax rate of 10%, effective from February 18.
Refusing to budge, Canada announced a 25% tariff on 1,256 US products, accounting for about 17% of the total value of goods imported from the US. The list includes many essential items, from food, household goods to cosmetics.
Ottawa asserted that Washington's move seriously violated trade agreements, including the United States-Canada-Mexico Free Trade Agreement (CUSMA, formerly NAFTA) and WTO regulations.
"We will pursue every legal remedy available to protect our national economic interests," a senior Canadian official said.
However, the Canadian government also acknowledged that both US tariffs and Canada's retaliatory measures will affect the domestic economy, although it has not yet announced details of the impact.
Amid concerns that domestic businesses will struggle, Canada has announced a special tax relief program, under which Canadian companies can apply for tax exemptions or refunds if they meet certain conditions.
Canada and Mexico are the two largest trading partners of the United States, with a total two-way trade turnover of hundreds of billions of dollars each year. Imposing broad tariffs could cause a ripple effect across the region, affecting millions of businesses and consumers.
Cao Phong (according to NBC, Newsmax, TheSun)
Source: https://www.congluan.vn/canada-kien-len-wto-dap-tra-quyet-dinh-ap-thue-25-cua-my-post332786.html
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