Canada initiates WTO dispute complaint regarding US steel, aluminum duties

Canada has requested World Trade Organization (WTO) dispute consultations with the United States following the levying of import duties on certain steel and aluminum products from Canada into the U.S. The request was circulated to WTO members March 13.

In its request, Canada notes that Feb. 10, the United States terminated Canada's exemption from the additional import duties on steel and aluminum articles, including derivative steel and aluminum articles, effective March 12. In addition, the additional import duty on aluminum articles, including nonalloyed unwrought aluminum articles and derivative aluminum articles, was increased from a rate of 10 percent ad valorem to 25 percent ad valorem.

In its request dated March 13 to the WTO, Canada claims the measures are inconsistent with U.S. obligations under the General Agreement on Tariffs and Trade (GATT) 1994, namely, “Article II:1(a) because the United States has failed to accord certain steel and aluminum articles of Canada treatment no less favorable than that provided for in the appropriate part of the United States' Schedule of Concessions and Commitments annexed to the GATT 1994. 2. Article II:1(b) because the United States has failed to exempt certain steel and aluminum articles of Canada from ordinary customs duties in excess of those set forth and provided for in the United States' Schedule of Concessions and Commitments.”

The GATT is an international treaty all WTO members are bound to that was designed to promote the free trade of goods and services across borders without the restrictions of tariffs, quotas or discriminatory practices.

The request for consultations formally initiates a dispute in the WTO. The organization says consultations give the parties an opportunity to discuss the matter and find a satisfactory solution without further litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant can request adjudication by a panel, the WTO says.