Canada considers trade retaliation against the U.S.
{{date|August 23, 2005}}

The government of [[w:Canada|Canada]] is demanding that the [[w:United States|United States]] stop applying duties on Canadian lumber and refund the C$5 billion in duties that has been collected. As [[NAFTA dismisses US claims of Canadian violation of Trade Agreement rules in softwood lumber dispute|reported earlier]] a [[w:North American Free Trade Agreement|NAFTA]] panel rejected Washington's claims justifying those duties, but the U.S. is not abiding by the NAFTA decision.

Canada had asked the [[w:World Trade Organization|WTO]] for permission to retaliate. Jacqueline LaRocque, a spokeswoman for Canadian Trade Minister Jim Peterson, said that Canada is considering imposing C$5 billion in duties on imports from the U.S. in retaliation.  "Canada has wanted to make it very clear that we are not happy with the position of the United States to simply ignore what is a clear NAFTA ruling in Canada's favor," Canadian Finance Minister Ralph Goodale was quoted as saying.

The U.S. is still dealing with a 4 billion dollar ruling against it by the WTO relating to its practice of helping large American companies set up "Foreign Sales Corporations" offshore in order to have a competitive edge in Europe. That dispute resulted in the U.S. having to change its laws last year.

== Sources ==
*{{source|url=http://today.reuters.com/news/newsArticle.aspx?storyID=2005-08-23T214007Z_01_SCH368061_RTRIDST_0_POLITICS-TIMBER-CANADA-USA-DC.XML
|title=Canada mulls duties on U.S. goods in softwood row
|author=
|pub=Reuters
|date=August 23, 2005}}
*{{source|url=http://www.cnn.com/2005/WORLD/americas/08/23/canada.lumber.ap/index.html?section=cnn_latest
|title=Canada hints at trade war with U.S. 
|author=[[Associated Press|AP]]
|pub=CNN
|date=August 23, 2005}}
*{{source|url=http://www.useu.be/Categories/FSC/Index.htm
|title=FOREIGN SALES CORPORATION 
|author=Public Affairs Office, United States Mission to the European Union 
|pub=United States Mission to the European Union
|date=October 22, 2004}}

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[[Category:United States]]
[[Category:Canada]]
[[Category:Economy and business]]
[[Category:Politics and conflicts]]
[[Category:World Trade Organization]]
The government of Canada is demanding that the United States stop applying duties on Canadian lumber and refund the C$5 billion in duties that has been collected. As reported earlier a NAFTA panel rejected Washington's claims justifying those duties, but the U.S. is not abiding by the NAFTA decision.

Canada had asked the WTO for permission to retaliate. Jacqueline LaRocque, a spokeswoman for Canadian Trade Minister Jim Peterson, said that Canada is considering imposing C$5 billion in duties on imports from the U.S. in retaliation.  "Canada has wanted to make it very clear that we are not happy with the position of the United States to simply ignore what is a clear NAFTA ruling in Canada's favor," Canadian Finance Minister Ralph Goodale was quoted as saying.

The U.S. is still dealing with a 4 billion dollar ruling against it by the WTO relating to its practice of helping large American companies set up "Foreign Sales Corporations" offshore in order to have a competitive edge in Europe. That dispute resulted in the U.S. having to change its laws last year.
United States Canada Economy and business Politics and conflicts World Trade Organization