Tariffs. Customs. Trade Remedies

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Canada

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The WTO announced that Members expressed their concerns over possible measures by the United States regarding extra duties on the import of automobiles, including cars, SUVs, vans, light trucks and automotive parts, at the Council for Trade in Goods (CTG) held on 3 and 4 of July. Over 40 members — including the 28 European Union members — took the floor to warn of the “serious disruption” to world markets and the multilateral trading system that may arise as a result of these potential measures, particularly in light of the large proportion of global trade accounted for by these products. The announcement said:

The Office of the US Trade Representative (USTR) published the following documents related to WTO disputes in the Federal Register. Although USTR will accept any comments received during the course of the dispute settlement proceedings, you should submit your comment on or before the “Comments Due” date to be assured of timely consideration by USTR. F.R. Date Matter Comments Due 06-25-18 Canada – Measures Governing Sale of Wine in Grocery Stores (Second Complaint) [Docket No.…

The Office of the US Trade Representative (USTR) published the following documents related to WTO disputes in the Federal Register. Although USTR will accept any comments received during the course of the dispute settlement proceedings, you should submit your comment on or before the “Comments Due” date to be assured of timely consideration by USTR.

On May 31, 2018, the Department of Finance posted on its website a “Notice of intent to impose countermeasures action against the United States in response to tariffs on Canadian steel and aluminum products,” announced by the United States and scheduled to take effect at 12:01 a.m. on June 1, 2018. In response to these measures, Canada intends to impose surtaxes or similar trade-restrictive countermeasures against up to C$16.6 billion in imports of steel, aluminum, and other products from the US, representing the value of 2017 Canadian exports affected by the US measures.  The Government is also considering whether additional measures may be required.

On May 31, 2018, the President issued Proclamation of May 31, 2018 – Adjusting Imports of Aluminum into the United States (Aluminum Proclamation) and Proclamation of May 31, 2018 – Adjusting Imports of Steel into the United States (Steel Proclamation).  The Aluminum proclamation eliminates the exemptions from the 10% tariff granted to Canada, Mexico, Brazil and the EU on behalf of its Member States, in earlier proclamations. In addition, quotas are established for aluminum imports from Argentina and steel imports from Argentina and Brazil, in addition to the quotas previously established for S. Korea. Proclamation 9740 provided that the exemption afforded to steel articles from Canada, Mexico, and the member countries of the EU shall apply only to steel articles of such countries entered for consumption, or withdrawn from warehouse for consumption, through the close of May 31, 2018, at which time such countries shall be deleted from the article description of heading 9903.80.01 of the HTSUS.  The Steel Proclamation does not extend this exemption, so Canada, Mexico and EU countries will now be subject to the 25% steel tariffs.

On May 28, 2018, Global Affairs Canada announced that the Hon. François-Phillippe Champagne, Minister of International Trade, and Eli Cohen, Israel’s Minister of the Economy and Industry, signed the modernized Canada-Israel Free Trade Agreement (CIFTA), known as the Canada – Israel Free Trade Amending Protocol 2018. Minister Champagne underlined the importance of the agreement as an engine of growth and prosperity for both countries. The announcement said:

On May 23, 2018, after approval by the Mexican Senate on April 24, 2018, the Diario Oficial de la Federación (Federal Official Gazette) published President Peña’s Decree approving the Comprehensive and Progressive Trans-Pacific Partnership Treaty, made in Santiago, Chile on March 8, 2018, as well as the four parallel agreements negotiated in the framework of its subscription.

On May 7, 2018, the U.S. Department of Commerce published notice of its periodic request for comments on subsidy programs provided by countries exporting softwood lumber or softwood lumber products to the United States.  Commenters have 30 days from today – or until June 6, 2018 – to submit written materials or commentary regarding (1) the country providing the subsidy; (2) the name of the subsidy program; (3) a brief description of the subsidy program; and (4) the government body or authority that provided the subsidy.   All comments should be filed via regulations.gov with reference to Docket No. ITA-2018-0002. 

In April, President Trump indicated that his administration would reconsider the US re-joining the Trans-Pacific Partnership (TPP), after withdrawing from it last year.

Following the United States’ withdrawal from the treaty, the remaining 11 signatory states, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam nevertheless proceeded to negotiate a new trade agreement which is now finalised and referred to as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).