Canada fights back with tariffs


Ten Packs
#1
Canada slaps sanctions on millions in US imports over trade dispute

Canadian Press

Thursday, March 31, 2005

OTTAWA (CP) - Canada is slapping millions of dollars worth of sanctions on U.S. imports in retaliation for a lingering trade irritant.

The announcement of a 15 per cent surtax on cigarettes, oysters and live swine from the United States came Thursday, just as the European Union took similar measures.

Canada is joining countries from around the world protesting a U.S. trade measure known as the Byrd amendment, which the World Trade Organization has deemed illegal.

The Byrd amendment allows American companies to keep the proceeds that Washington collects in anti-dumping disputes - something Canada and other countries complain unfairly enriches their U.S. rival firms.

"For the last four years, Canada and a number of other countries have repeatedly urged the United States to repeal the Byrd amendment," Trade Minister Jim Peterson said in a statement Thursday.

"Retaliation is not our preferred option, but it is a necessary action. International trade rules must be respected."

The highly unusual Canadian sanctions, which also cover certain types of fish, are to take effect May 1.

The EU says it will slap duties of up to 15 per cent, also on May 1, on such U.S. imports as paper, textiles, machinery and farm produce.

The 25-member EU said it took that action "in light of the continuing failure of the United States to bring its legislation in conformity with its international obligations."

Both Canada and the EU have long asked Washington to repeal the three-year-old Byrd amendment.

Last November, the WTO gave Canada and the other co-complainants the authority to retaliate.

The other countries involved include Mexico, Japan, India and Brazil.

"As large trading nations, let us not forget that the world is watching," said Peterson.

"We must send a clear message by way of our actions."



A small step, worth about 15 million - but a start. Unfortunately, no one really wins in a Trade War, but SOMETHING has to be done to lever the Americans off their asses.

(ps - there goes the Marlboro's, Rev.... )
 
mrmom2
#2
It will not do a thing Ten Packs.The only thing that will make the US stand up and notice is a tarrif on all energy exported to the US say about as much as they have put on softwood.
 
peapod
#3
Its about time.
 
Reverend Blair
#4
We need to hit them a little harder than that. We also don't seem to be targeting politically sensitive areas.

It's long past time that we slapped an export tax on energy.
 
mrmom2
#5
Thats what I said Rev :P
 
Munkustrap
#6
It's funny how talking never seems to work, unless you're really powerful and are threatening to kick the weaklings ass. What a world.
 
mrmom2
#7
Well said Munkhstrap
 
jackd
#8
What I have posted on an other forum on the same subject:
Quote:

What Canada and the EU are doing is like trying to kill an elephan with a toothpick.
Canada's retaliation is only worth $15million on an annual basis, which is close to nothing.
What we really need to do is close the oil/gas valve and the water tap going south for 20 minutes, every week.
They would then understand the message clearly

 
Reverend Blair
#9
If we psuhed the price of oil, gas, and electricity up 10% they'd get the idea pretty damned quick, I think. They need these things badly.

Unfortunately neither the Liberals nor the Conservatives believe in linkage, since they are really run out of Washington anyway.
 
mrmom2
#10
AND THE GLOBALISTS RUN WASHINGTON
What makes you think anything would change under the NDP Rev?
 
Reverend Blair
#11
They've got a solid platform and lean more towards the European model than the American one. There is also a social conscience within the party that should drive a will to meet our responsibilities.
 
mrmom2
#12
That don't sound to good to me We might end up like Germany telling woman on unemployment they have to be prostitute themselves did you hear that story?
 
crit13
#13
I don't think the tarrifs were really meant to "hit" the US hard. I think it was more a political move to get the US's attention to play fair.

Either way, I'm glad our government is finally doing something.
 
snoproblem
#14
It would have been a mistake to throw a fiscal haymaker, right from the opening bell. I think the initial tarrifs are an appropiate tap on the shoulder, just to get their attention.
 
Jay
#15
http://www.canadianembassy.org/trade/wltr-en.asp


Let's not allow some Canadians to destroy this.
 
mrmom2
#16
Look the EU is going to start there own tarrifs on the US .There making friends all over the globe

http://infowars.com/articles/nwo/eu_...y_us_goods.htm
 
Reverend Blair
#17
Yup, the US is sure playing fair with everybody, aren't they? With the power they hold at the WTO and NAFTA they have to act pretty badly before anybody even brings a case against them. To win that case is another matter again. They are basically acting like criminals at this point.

Jay, there is a lot of evidence that trade would have grown more, and more equitably, without NAFTA. Read Mel Hurtig's books.

There is no way they can just end trade with us though. They need us more than we need them. We supply key commodities like energy. We also supply fertilizers for crops. A real trade war, one where we got nasty, could shut down both their industry and their ability to feed themselves.
 
MMMike
#18
Quote: Originally Posted by Reverend Blair

Yup, the US is sure playing fair with everybody, aren't they? With the power they hold at the WTO and NAFTA they have to act pretty badly before anybody even brings a case against them. To win that case is another matter again. They are basically acting like criminals at this point.

Jay, there is a lot of evidence that trade would have grown more, and more equitably, without NAFTA. Read Mel Hurtig's books.

There is no way they can just end trade with us though. They need us more than we need them. We supply key commodities like energy. We also supply fertilizers for crops. A real trade war, one where we got nasty, could shut down both their industry and their ability to feed themselves.

I thought we have already won several cases against the U.S. at the WTO?? Criminals is a bit harsh but they are in violation of international treaties that they signed. They will lose the Byrd Amendment, but as far as refunding the duties applied already - I can't see it happening.

How can you say they need us more? There is a huge trade both ways, but it represents a much greater percentage of our GDP than theirs! Like it or not, we are the mouse sleeping next to the elephant.
 
crit13
#19
I would agree with Mike. We need them more than they need us.

80% of our exports are bought by the US. If they decided to shut down the border our economy would be non-existant.

They would face some hardships with energy but that would just speed up the Alaskan oil fields and import more oil from Iraq.

Lets not forget that oil will eventually run out and the US is by far the country that spends the most on R&D. They may suffer for a few years, but once they develop and mass produce alternative fuels, we can kiss our economy along with the ME's economy good bye.

We have an advantage over the ME though because we are more able to adapt. A large portion of our GDP comes from energy exports but almost ALL of the ME GDP comes from oil or natural gas.
 
mrmom2
#20
Thanks to our short sighted poltico's but China and India would eat up huge amounts of that trade if are leaders would get off there asses!
 
crit13
#21
Transportation costs would eat up and competitiveness we would have.

Not to mention, our fruits and vegatables would rot by the time it got there.
 
Reverend Blair
#22
Quote:

I thought we have already won several cases against the U.S. at the WTO??

We have. They appeal until the appeals run out, then launch another suit on the same issue from a slightly different angle. It's an attempt to tie things up in court until we give up and concede to their demands.



Quote:

How can you say they need us more? There is a huge trade both ways, but it represents a much greater percentage of our GDP than theirs! Like it or not, we are the mouse sleeping next to the elephant.

We supply key resources. Without our energy, their factories close. They don't have the capacity to replace our natural gas or electricity. They can replace our oil, but it will be much more expensive and come from less politically-stable places. That also goes for raw materials like wood and minerals.

What we have is the ability to shut down their manufacturing ability in the northern, and increasingly southern, states. We can also seriously affect their food production because of their agricultural practices and our production of potash.

At the same time we have other markets for our oil, could use our gas and electricity to meet domestic needs, and could trade with other nations for most of our needs even while expanding our own manufacturing capabilities. That trade would also affect US exports, further damaging their economy.

Look at the beef situation. As soon as we started talking about opening our own slaughter facilities and exporting our own product into foreign markets, the big US slaughter houses started lobbying for the border to open. George Bush suddenly wanted it open too. That isn't because they need Canadian beef to meet domestic demand, it's because they cut it up and export it. We would be taking away their foreign markets from both ends. A Montana judge ended the border opening because the people he looks at come election time are ranchers, not slaughter houses.

I'm not saying that it would be painless or wouldn't hurt our economy in the short term. I am saying that we are much more capable of weathering a trade war than the US is because what we get from them is non-essential or available elsewhere and what we sell to them can be sold to somebody else.
 
cub1c
#23
Quote:

We need them more than they need us.

Even if it's true, this is a looser attitude.

And competitive countrys aren't build by loosers like you.
 
mrmom2
#24
Thanks for the facts Rev
 
Reverend Blair
#25
Anytime, MrMom.
 
Vanni Fucci
Free Thinker
#26
US response to the tariffs...
 
Reverend Blair
#27
"Document not found." It's why I hate yahoo news.
 
Vanni Fucci
Free Thinker
#28
Yeah...that blows alright...

I'll try to find another source...
 
Vanni Fucci
Free Thinker
#29
Try this one out
 
Reverend Blair
#30
that always happens, Vanni. It's the scourge of the internet.
 

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