Canada Positioned To Impose C$1-Billion In Retaliatory Surtaxes On Imports

Under international trade rules, as of December 7, 2015, Canada has the right to impose just over C$1-billion per year in surtaxes on goods imported from the U.S. This is due to a decision by a World Trade Organization (WTO) arbitrator who ruled that Canada may impose additional border taxes on any goods of its choosing in retaliation for the failure of the U.S. to repeal and/or bring into compliance certain Country of Origin Labelling (COOL) laws found to be contrary to WTO rules. In the same decision, Mexico was granted the right to impose surtaxes of up to US$228-million per year on U.S. goods.

NEXT STEPS: CANADIAN IMPORTS COULD BE HIT WITH 100 PER CENT SURTAXES

Now that the arbitrator's decision has been issued, the final step is for Canada and Mexico to receive final authorization from the WTO's Dispute Settlement Body (DSB) to impose the retaliatory measures in the amounts determined by the arbitrator. In June of 2013 Canada published a list of products on