Effective Trade Requires Strong Enforceable Dispute Settlement

January 16, 2018

CANADA – The Canadian Chamber of Commerce continues to closely follow the recent developments concerning Canada’s request for consultations at the World Trade Organization (WTO) on the United States’ use of trade remedy measures.

“The U.S. and Canada share one of the largest and most integrated trade relationships in the world. While disputes are bound to happen, they must not define our relationship,” said the Hon. Perrin Beatty, President and CEO of the Canadian Chamber of Commerce

“Just as good fences make good neighbours, strong and enforceable dispute settlement mechanisms ensure that everyone is treated fairly. The events of the last couple of days underline the need for a fair and effective rules-based system, without exception,” Beatty added.

In the rules-based system represented by the WTO, independent, impartial dispute resolution is a critical tool for maintaining peaceful trade. These mechanisms serve to protect industries against unfair trade practices and are relied upon by all countries, including Canada, to ensure that trading relationships follow a core set of accepted norms.

Ultimately, the events of the past few days underline the case the Canadian Chamber of Commerce has made in the past: that robust and enforceable trade dispute settlement mechanisms are critical to any successful trading relationship.

“The U.S. penalties on Canadian newsprint put the interests of one paper mill ahead of hundreds of U.S. community newspapers that are struggling to survive. It’s an example of protectionism run wild and ignores the concerns of U.S. publishers who need reasonably priced inputs to stay afloat,” Beatty said.

The Canadian Chamber of Commerce calls on both the Canadian and the U.S. government to continue to work towards a softwood lumber agreement, and, along with Mexico, to continue to modernize the crucial North American Free Trade Agreement which is critical for our industries and workers.

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