Geneva: Canada has formally sought consultations with the United States through the World Trade Organization (WTO) within 10 days, concerning the recent tariff measures imposed on Canadian goods. This request was shared with WTO members on March 5, 2025.
Canada contends that the newly announced additional U.S. ad valorem duties—25 percent on all non-energy products and 10 percent on energy products originating from Canada—violate several provisions of the General Agreement on Tariffs and Trade (GATT) 1994, along with the WTO’s Trade Facilitation Agreement.
The Government of Canada stated that the US measures were not in alignment with the obligations of the United States under several provisions.
Firstly, it claimed, Article I:1 of GATT 1994 indicates that these measures do not provide Canadian products with the immediate and unconditional advantages, favours, privileges, or immunities that the United States grants concerning customs duties and related charges for similar products from other WTO Members.
Secondly, Article II:1(a) of GATT 1994 states that Canada’s commerce should receive treatment that is at least as favorable as what is detailed in the United States’ Schedule of Concessions annexed to GATT 1994.
Thirdly, Article II:1(b) of GATT 1994 highlights that the measures impose customs duties that exceed the bound rates specified in the United States’ Schedule of Concessions.
Additionally, Article V:3 of GATT 1994 points out that these measures apply customs duties to goods in transit.
Lastly, Article 7.8.2(d) of the TFA indicates that the measures do not allow for a de minimis shipment value or dutiable amount for which customs duties and taxes would not be collected.
Canada claimed that the measures described by the United States undermine the benefits that Canada is entitled to under these agreements.
The Government of Canada retains the right to discuss further measures and any additional factual or legal claims during consultations and in future requests for panel establishment. Given that some of the products affected by these import duties fall under the agricultural categories of the Harmonized Tariff System of the United States 2025, the Government of Canada views this consultation request as urgent, particularly concerning perishable goods.
– global bihari bureau
