Ottawa, Ontario, Canada

 

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The World Trade Organization gave formal approval yesterday for Canada and seven other jurisdictions to punish the United States for refusing to withdraw controversial trade legislation.

The office of International Trade Minister Jim Peterson welcomed the news, because the WTO's move sanctions retaliatory steps Canada is considering taking against the U.S.

Earlier this week, the government announced it would consult Canadian business on how it should deal with the Byrd Amendment, the 2000 legislation that provides money the U.S. receives from some import tariffs to American companies that support such trade action.

The legislation, named after the West Virginian senator who sponsored it, affects imports Washington [D.C.] considers unfairly subsidized in their country of origin.

Payment from duties on imports from Canada between 2001 and 2003 totalled about $17 million U.S., but this country is more concerned about the billions of dollars in payments from softwood lumber duties that American companies stand to begin receiving in 2007.

If it decides to charge duties on U.S. imports, Canada could double the price of U.S. products such as newsprint, wood products and seafood.

International Trade will consider whether such action is necessary after its consultations.

Andrea Lanthier, press secretary to Mr. Peterson, said the government had been expecting the WTO announcement and that it added weight to [the] retaliation Canada and other countries are now preparing.

"It's been rubber-stamped officially," Ms. Lanthier said.

She could not say, though, whether Prime Minister Paul Martin will discuss the Byrd Amendment with George W. Bush when the U.S. President visits Canada next week.

The WTO had previously ruled the Byrd Amendment was inconsistent with international trade practices.

In addition to Canada, the European Union, Japan, Brazil, Chile, India, Mexico and South Korea complained to the international body about the Byrd Amendment.

 

Copyright 2004, The Ottawa Citizen.