Canada in a formal dispute from the USA. The Customs Case went to the WTO

Canada asked the World Trade Organization (WTO) for consultations in the case of 25 percent. American duties for cars and car parts imported from Canada – the WTO informed in Monday's announcement. The Canadian application is a formal start of the dispute under the WTO.

The government in Ottawa decided that the US funds violated earlier obligations arising from General Agreement on Tariffs and Trade (GATT – a general agreement on customs tariffs and trade). The application indicates the provisions that, according to Canada, were violated, such as not complying duties than consolidated duties located on the list of GATT provisions.

In its application, Canada also referred to the free trade agreement between Canada, the USA and Mexico (Cusma). In the presidential ordinance, the duties are mentioned that 25 percent Clinics do not follow “for car parts that use preferential Cusma conditions”.

When, last Thursday, Prime Minister Canada Mark Carney announced the imposition of retaliation duties on cars from the USA, he announced that cars corresponding to Cusma conditions are not covered by Canadian customs and reminded, also in the context of other American duties, that Cusma obliges to consult two months before introducing customs.

The application is a formal start of the dispute within the WTO, and during the 60-day consultation of the party have a chance to find a solution without having to refer to the court.

From Toronto Anna Lach (PAP)

Lach/ Mal/