Canada Asks for Dispute Panel Over Solar Safeguards
Canada has requested a state-to-state dispute panel over the U.S. safeguard tariffs against Canadian solar cells and panels, because under USMCA, and NAFTA before it, safeguards are not supposed to apply in North America if the exports from either Canada or Mexico are not contributing to serious injury in the domestic market. The International Trade Commission said Canada was not contributing to the harm to the U.S. solar manufacturing industry. Several members of the Washington state delegation to Congress have also argued Canada should not be a target, both for that reason, and because exempting Canada could add to jobs in solar manufacturing in their state (see 2106090066).
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The notice, signed June 18, says that the safeguard rate was supposed to decline to 15% in 2021, but in October 2020, the administration chose to set the duty at 18%. Canada argues that this proclamation, from Oct. 13, means the decision to include Canada in the tariff happened after USMCA went into force.
Canada previously tried to ask for a NAFTA panel in 2018, but because state-to-state dispute was toothless under NAFTA, nothing happened (see 1807230029). A USTR spokesperson said, "We have a close relationship with Canada and routinely collaborate on a range of topics. We have received their panel request and will respond at the appropriate time."