Canada files WTO complaint over US auto tariffs

TRENTON, Canada

Canada has initiated a complaint with the World Trade Organization (WTO) over the US imposing 25% import tariffs on Canadian automobiles and auto parts, the WTO said Monday.

“Canada has requested WTO dispute consultations with the United States concerning US measures imposing a 25% duty on automobiles and automobile parts from Canada,” the WTO announced in a brief statement on its website. “The request was circulated to WTO members on 7 April.”

Canada’s request for WTO dispute consultations with the US is the first step in trying 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, as has happened due to US President Donald Trump’s imposition of trade tariffs on vehicles made outside the US and those that contain parts made elsewhere.

Vehicles under the Canada-United States-Mexico Agreement (CUSMA) can avoid the 25% tariffs as long as the vehicle is fully assembled in the US with parts originating in the US. The tariffs apply to the portion of the vehicle that is of foreign origin.

If the consultations between Canada and the US do not come to a solution within 60 days, Canada can request that the complaint go to WTO adjudication.