Canada Lists Products from U.S. that Could be Subject to Additional Duties In Retaliation Against the Byrd Amendment, Etc.
On November 23, 2004, the Canadian government published a notice in the Canada Gazette seeking comments by December 20, 2004 on possible retaliation against the U.S. in response to the U.S.' failure to repeal the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA, commonly referred to as the Byrd Amendment). An associated press release and backgrounder was also issued.
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According to these notices, Canada's retaliation authorization request was meant to ensure that the level of retaliation is linked to annual disbursements of antidumping (AD) and/or countervailing (CV) duties under the Byrd Amendment, now and in the future. Disbursements related to AD/CV duties collected on Canadian products have so far been modest (approximately US$5.2 million in 2001, US$2.5 million in 2002 and US$9.5 million in 2003).
Canadian softwood lumber producers have paid over US$3 billion in AD/CV cash deposits to date. Small amounts of softwood lumber AD/CV duties, for which no administrative review was requested, were disbursed in 2003. Approximately US$1 billion annually could begin to be disbursed starting in late 2007. This is due to the ongoing process of administrative reviews and NAFTA litigation.
(The World Trade Organization (WTO) Arbitrator authorized Canada to retaliate up to 72% of the annual level of U.S. AD and CV duties collected on Canadian goods disbursed to U.S. producers under the Byrd Amendment.)
The Canadian government states that it will consider its options regarding retaliation once it has completed its consultations with Canadians, and is considering the following two actions:
100% surtax on imports of selected products from the U.S. - the application of 100% surtax on imports of selected products from the U.S. The list of products upon which this surtax could be imposed is indicated below by Canadian Customs Tariff Number:
(See Gazette notice for brief written product description; consult Canada's Schedule to the Customs Tariff for further details on these products, at http://www.cbsa-asfc.gc.ca/general/publications/customs_tariff-e.html )
| 4802.55.00 |
| 4802.56.00 |
| 4802.57.00 |
| 4802.61.00 |
| 4802.62.00 |
| 4802.69.00 |
| 4804.19.00 |
| 4804.21.00 |
| 4804.29.00 |
| 4804.31.00 |
| 4804.39.00 |
| 4805.11.00 |
| 4810.22.00 |
| 4810.92 |
| 4814.20 |
| 4814.90 |
| 5703.90 |
| 6116.10 |
| 64.02 |
| 70.13 |
| 71.01 |
| 7118.10 |
| 8415.10 |
Suspension of injury requirement on dumped/subsidized goods originating in/exported from the U.S. - the suspension of the injury requirement for the application of border measures on dumped and subsidized goods originating in or exported from the U.S.
Canadian Gazette notice (CG pub 11/23/04), including table and Canadian tariff numbers written product descriptions, available at http://canadagazette.gc.ca/partI/2004/20041123-x/html/extra-e.html.
Canada news release and backgrounder (dated 11/23/04), available at http://webapps.dfait-maeci.gc.ca/MinPub/Publication.asp?Language=E&publication_id=381800
BP Note
The countries of the European Union (EU), Mexico, Brazil, Chile, India, Japan, and Korea have also been authorized by the WTO arbitrators to retaliate against the U.S., and may take similar actions.
(See ITT's Online Archives or 11/29/04 news, 04112915, for BP summary of the EU's list of U.S. products that could be considered for additional duties.)