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Canada's response on tariffs won't be restricted by terms of USMCA: negotiator

Last Updated Jul 9, 2020 at 3:16 pm EDT

Global Affairs Canada Chief negotiator Steve Verheul waits to appear before the Standing Committee on International Trade Wednesday February 26, 2020, in Ottawa. Verheul says the new North American trade deal won't limit the federal government's options if it is forced to retaliate against U.S. tariffs on steel and aluminum. THE CANADIAN PRESS/Adrian Wyld

WASHINGTON — Canada’s chief trade negotiator says the new North American trade deal won’t limit the federal government’s options if it is forced to retaliate against U.S. tariffs on steel and aluminum.

Steve Verheul tells a House of Commons committee hearing that under the terms of the May 2019 agreement on tariffs, Canada would be able to impose retaliatory levies against American aluminum, as well as any U.S. products containing it.

However, Verheul also says the federal government will have to wait and see exactly what the U.S. decides to do before choosing how to respond.

U.S. Trade Representative Robert Lighthizer has accused Canadian aluminum producers of exceeding export limits established last spring when the White House agreed to lift its tariffs on metals imports from north of the border.

Verheul says Canadian producers had to adjust their production as a result of a plunge in demand resulting from the COVID-19 pandemic, and the U.S. is misinterpreting those changes as a “surge” in exports.

In a public question-and-answer session today, Lighthizer offered no hints about what the Trump administration intends to do — although he did defend the use of tariffs as a tool for keeping trading partners in line.

This report by The Canadian Press was first published July 9, 2020.

 

 

The Canadian Press