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Canada to Levy 15 Pct Duty on Some U.S. Goods

Canada to Levy 15 Pct Duty on Some U.S. Goods
Thu Mar 31, 2005 11:04 AM ET

OTTAWA (Reuters) - Canada said on Thursday it would impose a 15 percent surtax on U.S. imports of live swine, cigarettes and some fish in retaliation for Washington's failure to repeal a controversial anti-dumping law.

Canada said the new tax will bring in revenue of about C$14 million ($11.6 million) a year from its primary trading partner. It announced plans just hours after the European Union announced similar sanctions against the United States. The new Canadian duty will be imposed from May 1.

"Retaliation is not our preferred option, but it is a necessary action. International trade rules must be respected," Canada's Trade Minister Jim Peterson said in a statement.

In August, the World Trade Organization gave the go-ahead for Canada, the EU and others to apply trade sanctions after Washington failed to conform with a WTO ruling that it repeal a subsidy program for U.S. companies known as the Byrd Amendment.

The controversial program distributes funds raised by anti-dumping duties on imports to the U.S. companies that initially requested government anti-dumping protection.


LINK: http://www.reuters.com/newsArticle.jhtml?type=domesticNews&storyID=8050902