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Canada to put trade surtax on U.S. goodsFrom wire reports
OTTAWA — The Canadian government Thursday said it will slap a 15% surtax on some U.S. products in retaliation for a lingering trade dispute. The retaliatory surtax will amount to $11.6 million this year.
The announcement of the surtax on cigarettes, oysters and live swine from the USA came just as the European Union took a similar measure.

Canada is joining countries from around the world protesting a U.S. trade measure known as the Byrd amendment, which the World Trade Organization has deemed illegal.

The Byrd amendment allows American companies to keep the proceeds that Washington collects in anti-dumping disputes, something Canada and other countries complain unfairly enriches their U.S. rival firms.

"For the last four years, Canada and a number of other countries have repeatedly urged the United States to repeal the Byrd amendment," Canadian International Trade Minister Jim Peterson said in a statement Thursday.

"Retaliation is not our preferred option, but it is a necessary action. International trade rules must be respected."

The Canadian sanctions, which also cover certain types of fish, are to take effect May 1.

The EU says it will slap duties of up to 15%, also on May 1, on such U.S. imports as paper, textiles, machinery and farm produce.

The 25-member EU said it took that action "in light of the continuing failure of the United States to bring its legislation in conformity with its international obligations."

Both Canada and the EU have long asked Washington to repeal the Byrd amendment.

In November, the WTO gave Canada and the other co-complainants the authority to retaliate. The other countries involved include Mexico, Japan, India and Brazil.

The developments come a day after the Bush administration cited a total of 58 countries and three trading areas for erecting significant trade barriers that harm U.S. manufacturers and farmers.

As usual, the report devoted the most coverage to China, a total of 58 pages, but included countries from Angola to Vietnam.
http://www.usatoday.com/money/economy/trade/2005-03-31-trade-usat_x.htm