Canada has formally requested World Trade Organization (WTO) dispute consultations with the United States. The dispute involves U.S. duties on certain steel and aluminum products. Canada made the request on March 13, 2025. The complaint stems from the termination of Canada’s exemption from U.S. duties.
Background of the Dispute
On February 10, 2025, the U.S. ended Canada’s exemption from additional import duties. These duties came into effect on March 12, 2025. The U.S. increased the duty on aluminum products from 10% to 25%. This includes nonalloyed unwrought aluminum and derivative aluminum items. Canada believes these measures violate U.S. obligations under the General Agreement on Tariffs and Trade (GATT) 1994.
Canada’s Claims and WTO Procedure
Canada argues that these U.S. actions violate Article II:1(a) and Article II:1(b) of the GATT. Canada claims that the U.S. has failed to provide fair treatment to Canadian steel and aluminum. U.S. duties exceed those in the United States’ Schedule of Concessions. This goes against the trade agreement meant to reduce barriers and promote free trade.
The WTO consultations offer Canada and the U.S. an opportunity to resolve the issue. If consultations fail within 60 days, Canada can request a panel for adjudication. This process marks the start of a potential legal battle at the WTO.
Impact on Global Trade and Metal Prices
This dispute affects the steel and aluminum industries, which are vital to both countries. U.S. tariffs on Canadian metals could disrupt supply chains and raise production costs. These changes may also impact global metal prices. SuperMetalPrice will monitor developments, as the case could affect the global metals market.
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