Canada on Wednesday, March 5, filed a lawsuit with the World Trade Organization (WTO) dispute settlement body over US customs duties.
‘Canada has asked the WTO dispute settlement body to initiate consultations with (the) United States over new tariff measures imposed by the United States on goods originating in Canada. The request was sent to WTO members on 5 March,’ the WTO said in a statement.
Canada argues that the additional ad valorem duties announced by the US are inconsistent with various provisions of the 1994 General Agreement on Tariffs and Trade (GATT) as well as the WTO’s Trade Facilitation Agreement.
On 4 March, US President Donald Trump threatened Canada with increased duties if Canada retaliates against the US tariffs. On the same day, Canadian Prime Minister Justin Trudeau called Washington’s imposition of duties the start of a trade war against Ottawa. He also announced that Canada would impose duties of 25% on imports from the US worth $125bn in 21 days.