Canada slaps 15% penalty on select U.S. imports

Canada slaps 15% penalty on select U.S. imports    Canada joined the European Union in imposing duties on U.S. products in retaliation for continued U.S. disbursement of penalty collections in trade disputes to domestic manufacturers and growers of trade, a practice the World Trade Organization has ruled an illegal subsidy.
   Under U.S. law sponsored by Sen. Robert Byrd, D-W.Va., U.S. industries that file unfair trade complaints against foreign competitors can receive a share of the antidumping and counterveiling duties, rather than have the money go into government coffers. Supporters of the law say it is designed to compensate companies for some of the damage caused by competitors who underprice their goods or receive government subsidies.
   The Canadian government said it would match the EU’s 15 percent duty on a range of products by assessing a levy on swine, cigarettes, oysters and certain specialty fish beginning May 1.
   The WTO last year gave seven nations, including Canada, permission to impose trade sanctions if the United States did not repeal the Byrd Amendment.
   “Retaliation is not our preferred option, but it is a necessary action. International trade rules must be respected,” said International Trade Minister Jim Peterson in a statement. “As large trading nations, let us not forget that the world is watching.”
   Canada said the duties would total about $14 million per year. It said it focused on products that Canadians can source from other nations as well and avoided products that are inputs to Canadian manufacturing, to limit harm to its citizens.
   Canada is involved in another major trade dispute with the United States over softwood lumber. The United States claims the Canadian lumber industry is subsidized, and has collected about $4.3 billion in counterveiling duties and continues to collect them at a rate of about $1 billion per year. If Canada loses its WTO appeal on the matter and is not refunded duties on the lumber, billions of dollars could be disbursed to U.S. lumber interests.