Canada/US Trade War Continues

[Stunt]

Source

Canada to slap surtax on some U.S. goods in trade fight
Last Updated Thu, 31 Mar 2005 11:04:57 EST
CBC News

OTTAWA - Canada plans to impose a 15 per cent surtax on imports of U.S. cigarettes, oysters, live swine and some types of fish starting May 1.

Ottawa said Thursday it is slapping on the duties to retaliate against the United States for its failure to comply with the World Trade Organization ruling on the Byrd Amendment.

The amendment allows U.S. producers to receive anti-dumping and countervailing duties collected by the U.S. government from foreign competitors.

The WTO has ruled the amendment is illegal, and in November 2004, the trade body gave Canada and the other co-complainants the authority to retaliate.

Canada's decision to retaliate came as the European Union took similar action. The EU is planning 15 per cent tariffs on U.S. paper, textiles, machinery and farm produce beginning May 1.

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

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

I am not a fan of tariffs and fully support the respect of set trade policies and rules. The US seems to be in the wrong on a couple of trade issues as ruled by the WTO, yet refuses to fess up to its obligations. I'm interested to see if these tariffs will create any motivation for the US to correct its wrong stance.
Canada has very little sway when comparing economic power, so i think these tariffs may hurt canadians more than americans. Hopefully they picked some effective products we canadians can get elsewhere, but at the same time create enough of a dent in US sales of these products.

Good or bad idea standing up for fair trade with this method?...Any other ideas on how to equalize the situation?

 

[K1052]

You guys want to get the US government's attention?

Slap huge taxes on electricity exports in the middle of a summer heat wave.

 

[dmcowen674]

Interesting.

I thought NAFTA would trump this kind of Political play?

Looks like Canada wants to be invaded and taken over by the U.S.

 

[nutxo]

Originally posted by: K1052
You guys want to get the US government's attention?

Slap huge taxes on electricity exports in the middle of a summer heat wave.

I wish.

Id love to see more power plants built in the US.

 

[maddogchen]

why the emphasis on Canada? Europe and Japan did the same thing.

 

[Grunt03]

we could do the same only if Canada actually made something to tax.

 

[RabidMongoose]

I think that ultimately this would be good for the two countries. It's time to distance ourselves from each other.

 

[3chordcharlie]

Originally posted by: Grunt03
we could do the same only if Canada actually made something to tax.

Electricity, oil and lumber aren't enough?

 

[Jon855]

I've a solution, INVADE THE CANADIANS... and make it our own... after invading CANADA "Enduring Bacon Freedom Operations" exile all Canadians...

 

[dmcowen674]

Originally posted by: Jon855
I've a solution, INVADE THE CANADIANS... and make it our own... after invading CANADA "Enduring Bacon Freedom Operations" exile all Canadians...

That won't be enough. The U.S. has to invade and take over Europe now too:

3-31-2005 EU and Canada impose 15% Tariffs on U.S. Goods because of Byrd Amendment

"Retaliation is not our preferred option, but it is a necessary action. International trade rules must be respected," said Canada's Trade Minister Jim Peterson in a statement released in Ottawa.

Brussels and Ottawa said they opted for the duties because of Washington's failure to fix a program known as the Byrd amendment which the World Trade Organization has said is illegal.

The level of retaliation could rise depending on the amount payments made under the Byrd program.

Byrd and other supporters want the Bush administration to negotiate a deal in world trade talks that would allow the United States to keep the program.

Japan has been authorized to impose about $80 million in sanctions on the United States, but has not decided yet whether to exercise that option.
===========================================
Ah, U.S. quickly becoming scourge of the World while in-fighting is on the rise.

Looking more like the U.S. will be the one prime for being invaded.

 

[Deftonespoop]

Originally posted by: Grunt03
we could do the same only if Canada actually made something to tax.

Hmmm.... Canada making something that we buy???? I seem to remember buying 4 video cards in a row from a Canadian company.... Let me think.... oh yah I remember now.... ATI....

 

[B00ne]

Afaik this is not a Canada/US trade war but a US/world trade war....
EU, Japan, Brazil and I dont know who else are doing the same

 

[Kibbo]

I agree with B00ne. The tariffs allowed the EU are several times the size allowed Canada. The fact that the US is willing to break treaties with all it's allies is concerning.

What I wonder is this: the US has used decades of political capital implementing these free trade treaty regimes all over the world. Why are they withdrawing from that position now? I just don't get it.

 

[Zebo]

Nothing wrong with tarriffs we had 100% tarriffs to grow our remingtons, fords and other industrail powers from dirt farmers..could'nt compete with europe in the 19th century. We also stole all the IP we could from europe just like China is doing now to us. Besides do we really want to compete with slave laborors in the third world? I know it's good for business in the short term profit sense and good for consumer in the getting more for less, but what happens when everything gets shipped there like now? We'll have to lower our wages to compete. I can't live on 35 cents a day nor do I want to. I don't want to live in a Industrail dormitory working 85 hours a week with no holidays do you?
http://www.anandtech.com/mb/showdoc.aspx?i=2080

 

[StageLeft]

The US really is not a very good team player these days is it?

 

[Kibbo]

Originally posted by: Zebo
Nothing wrong with tarriffs we had 100% tarriffs to grow our remingtons, fords and other industrail powers from dirt farmers..could'nt compete with europe in the 19th century. We also stole all the IP we could from europe just like China is doing now to us. Besides do we really want to compete with slave laborors in the third world? I know it's good for business in the short term profit sense and good for consumer in the getting more for less, but what happens when everything gets shipped there like now? We'll have to lower our wages to compete. I can't live on 35 cents a day nor do I want to. I don't want to live in a Industrail dormitory working 85 hours a week with no holidays do you?
http://www.anandtech.com/mb/showdoc.aspx?i=2080

The US worker is a bit more skilled than the average sweatshop worker.

Also, tariffs make products more expensive for the consumer. Your 10$ an hour job isn't so great when the CPI starts hitting the double digits. What's even worse is that tariffs make capital more expensive for the producer, so your productivity becomes shot.

And do you remember the last time the US led the charge on an international trade war? I'll give you a hint: it happened between the two world wars.

 

[Zebo]

Originally posted by: Kibbo

Originally posted by: Zebo
Nothing wrong with tarriffs we had 100% tarriffs to grow our remingtons, fords and other industrail powers from dirt farmers..could'nt compete with europe in the 19th century. We also stole all the IP we could from europe just like China is doing now to us. Besides do we really want to compete with slave laborors in the third world? I know it's good for business in the short term profit sense and good for consumer in the getting more for less, but what happens when everything gets shipped there like now? We'll have to lower our wages to compete. I can't live on 35 cents a day nor do I want to. I don't want to live in a Industrail dormitory working 85 hours a week with no holidays do you?
http://www.anandtech.com/mb/showdoc.aspx?i=2080

The US worker is a bit more skilled than the average sweatshop worker.

For now. Like I said they stealing everything we got. They even use American (pirated of course) texts in China's and India's universities. Just a latter of time before all the auto makers move there, all defense contractors, all big pharma, pretty much every high paying american job.

 

[Zebo]

Originally posted by: Kibbo

Originally posted by: Zebo
Nothing wrong with tarriffs we had 100% tarriffs to grow our remingtons, fords and other industrail powers from dirt farmers..could'nt compete with europe in the 19th century. We also stole all the IP we could from europe just like China is doing now to us. Besides do we really want to compete with slave laborors in the third world? I know it's good for business in the short term profit sense and good for consumer in the getting more for less, but what happens when everything gets shipped there like now? We'll have to lower our wages to compete. I can't live on 35 cents a day nor do I want to. I don't want to live in a Industrail dormitory working 85 hours a week with no holidays do you?
http://www.anandtech.com/mb/showdoc.aspx?i=2080

The US worker is a bit more skilled than the average sweatshop worker.

Also, tariffs make products more expensive for the consumer. Your 10$ an hour job isn't so great when the CPI starts hitting the double digits. What's even worse is that tariffs make capital more expensive for the producer, so your productivity becomes shot.

And do you remember the last time the US led the charge on an international trade war? I'll give you a hint: it happened between the two world wars.

Some economists think it deepend the great depression which I happen to agree with but what I'm talking about is apples to oranges. Course it's a big problem to impose tarriffs on peoples who actually buy stuff from you, like we did on europeans w/ Smoot-Hawley . All the chineese are buying though thier slave camp labors is bonds which we should'nt be running up or selling to foriegners anyway becuase it gives them undue influence. They are not buying anything I make or anyone else. No weapons Since we have arms sales ban, no durable goods, they are basically anti-american to the core anyway and would rather not get anything from us. And us trading with them with all thier human rights issues, taiwan issues, being communist IMO is a travesty.

 

[dannybin1742]

I thought NAFTA would trump this kind of Political play?

yeah i know the lab i work in buys lots of chemicals from toronto research chemicals and on the packing slips it says NAFTA applies, so there is not tariff (cause we all know this can go both ways- in surtax that is)