Canada initiates NAFTA mechanism against US import duties
Canada on Friday filed a request for panel review within the framework of the North American Free Trade Agreement (NAFTA) over the US decision to impose duties on imports of Bombardier jet airliners.
The move is against the US plan to impose duty rates of nearly 300 percent on future imports of the C Series aircraft produced by the Canadian manufacturer Bombardier Aerospace.
The statement issued by the Canadian Foreign Ministry said Canada also filed a request for panel review over the US decision to impose duties on imports of Canadian softwood lumber.
The US International Trade Commission said softwood lumber imports from Canada were subsidized and hurt the US industry.
The panel reviews were requested according to a dispute settlement mechanism under NAFTA Chapter 19, for a panel consisting of US and Canadian trade experts to decide whether the duties follow the US trade law.
Otherwise, the Canadian complaints will have to go through the US court system.
NAFTA Chapter 19 is Canada's major demand in the original NAFTA and remains a priority as renegotiation over the trade deal moves to Montreal next week.
The World Trade Organization (WTO) said Canada has lodged wide-ranging trade complaints against the US over its use of anti-dumping and anti-subsidy duties against imports from Canada.