Canada files WTO complaint over US auto tariffs
Canada has initiated a complaint with the World Trade Organization or WTO over the U.S. imposing 25% import tariffs on Canadian automobiles and auto parts.
Canada’s request for WTO dispute consultations with the U.S. is the first step to try to resolve the problem before official litigation by the trade organization.
Canada claims the 25% tariffs violate obligations that fall under the 1994 General Agreement on Tariffs and Trade.
The general agreement lays out the cases governing how member countries can use tariffs on trading partners.
It was created to avoid trade wars.
Vehicles under the Canada-United States-Mexico Agreement can avoid the 25% tariffs as long as the vehicle is fully assembled in the U.S. with parts originating in the United States.
The tariffs apply to the portion of the vehicle that is of foreign origin.
If the consultations between Canada and the U.S. do not come to a solution within 60 days, Canada can request the complaint go to WTO adjudication.
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