Powderedmaggot

Canada has finnal done something to get back at The US for thier years of ignoring trade agreements. Will this have any impact on the US's policies? I doubt it. I think wine & grape juice would have been a better target but it's a start.



Canada to slap surtax on some U.S. goods in trade fight
Last Updated Thu, 31 Mar 2005 15:31:42 EST
CBC News

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.

"For the last four years, Canada and a number of other countries have repeatedly urged the United States to repeal the Byrd Amendment," International Trade Minister Jim Peterson said.

"Retaliation is not our preferred option, but it is a necessary action. International trade rules must be respected," Peterson said in a release.

"We're disappointed that this step is being taken," said Richard Mills, spokesman for the Office of the United States Trade Representative.

"The United States is working to comply with the WTO decision regarding the Byrd Amendment," Mills said.

portereight

Am I the only one to find it surprising that our government seems to have "grown a pair" where it concerns cross border relations? First we say no to missile defense and now this. Quite a month for Mr Martin and company.

superiorrain

Mods please delete this message. Thank you

__________________
"The only way to discover the limits of the possible is to go beyond them into the impossible." - Arthur C. Clarke

Janey

ya sure. Just how long does it take to comply??? It's like gas prices, they go up fast, but sure take a long time to come down...

streak_56

Well... looks like Canada might be in the long haul if the US doesn't comply. Europe can sustain itself without the US, but it might be harder for Canada to do so. It should be interesting to see what happens and how the US is going to follow up on the retatiation. Mr Martin is showing what hes made of, and looks like the Canadian government is fighting for what they think is best for Canada. Hopefully this will turn out best for either side.

jizzmasterp

The U.S. and Canada need each other as trading partners and the rest of the world needs the U.S. This issue will eventually get resolved as the Byrd amendment and Canada's retaliation are a small dent in the overall Canada-U.S. trade picture.

__________________
Don't mind the name. It was chosen before I discovered that there were forums that didn't start with "Titty."

Powderedmaggot

I agree, it is a very small dent in trade relations but perhaps the 'mercans will wake up and realize that we are getting pissed off. Personally I think Canada should look for new markets for our lumber and refuse to sell to the US. I think when they realize they would have to start cutting thier own forests to build houses, make toilet paper & mc donalds bags they would come around in a hurry.

I think that saying that the rest of the world needs the US is a bit of stretch. I'm sure the world could get along just fine without the US as a trading partner.

unbzete

Well no, not really. Emerging markets would crumble as they depend on the US market for exports.

One thing no one is really bringing up is oil. Canada is the top exporter of oil to the US, accounting for 15% of total imports according to DoE. Oil is the US' most important import bar none.

Any stoppage in Canadian oil exports to the US would have serious short term economic fallout for them(anyone remember the oil shocks of 1973, and 1979). And really, economic fallout would less for us in that worst case scenario, because there are several other states that would be MORE than willing to take over the imports of the natural resources we ship to the US; China, Japan and India come to mind.

skier

Something so drastic would cause considerable (read: threats of invasion) tension among us-canada relations, unbzete. With the current management of the U.S. administation, I think Canada is like a monkey on a tiger's back. Right now the tiger has it's fill of Afganistan and Iraq. We can poke the tiger to sit somewhere else because they are sitting on our tail, but if we do something dumb like bite it, well, it has sharp teeth.

Right now the US isn't moving. All we've done is give them a poke to tell em get off our tail.


I also agree that Canada should try HARD for finding other buyers of softwood lumber. It's high quality, cheap enough for the U.S. to ban it, and could ship easily...

__________________
"Asking a bomb squad if an old bomb is still "real" is not the best thing to do if you want to save it." - denim

Yakk

Canada signed away it's energy soveriegnty with the NAFTA, so long as it is in effect. This is the sweet plum that the USA gets out of NAFTA.

__________________
Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.