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Canada files WTO complaint against US over trade rules Canada files WTO complaint against US over trade rules
(35 minutes later)
Canada has filed a complaint with the World Trade Organization, accusing the US of breaking international trade rules.Canada has filed a complaint with the World Trade Organization, accusing the US of breaking international trade rules.
The complaint targets US practices tied to tariffs imposed for alleged subsidies and below-cost product sales. The complaint challenges the ways the US investigates products for subsidies and below-cost sales in the US.
The action comes amid disputes between the two countries over issues such as dairy, aircraft sales and lumber. The US called the claims "unfounded".
The countries are also involved in tense efforts to renegotiate the Nafta trade deal. The action comes amid disputes between the two countries over issues such as dairy, aircraft sales and lumber as well as tense efforts to renegotiate the North American free trade deal.
President Donald Trump has threatened to scrap the agreement, which sets trade terms between the US, Mexico and Canada. Canada's 32-page complaint cites US investigations of products from countries around the world, with decisions that date back to 1996.
His administration has also taken a more protectionist stance on trade, taking action in a number of disputes it says concern the dumping of products in the US. Among other charges, Canada says the US improperly restricts parties from presenting evidence to defend themselves, with a cut-off for supplying information that comes too early in the process.
Canada filed the complaint with the WTO on 20 December. It was shared with the organisation's members on Tuesday. It also says the US International Trade Commission is unfairly biased, since disputes over which the body's six commissioners are evenly divided automatically result in a finding.
The complaint targets a process that the US has deployed frequently under President Donald Trump, who has embraced protectionist rhetoric on trade.
The US Commerce Department launched more than 80 antidumping and countervailing duty investigations last year - a 46% increase from 2016. The investigations can lead to steep tariffs.
US Trade Representative Robert Lighthizer called the complaint "a broad and ill-advised attack on the US trade remedies system".
He said: "Canada's claims are unfounded and could only lower US confidence that Canada is committed to mutually beneficial trade."
Canada filed the petition with the WTO on 20 December. It was shared with the organisation's members on Wednesday.
The complaint allows for 60 days of "consultation". If it is not resolved in that time, it is subject to adjudication by a WTO panel.The complaint allows for 60 days of "consultation". If it is not resolved in that time, it is subject to adjudication by a WTO panel.