Canada initiates NAFTA mechanism against U.S. import duties

Canada on Friday filed a request for panel review within the framework of the North American Free Trade Agreement (NAFTA) over the U.S. decision to impose duties on imports of Bombardier jet airliners, the Canadian Foreign Ministry said Friday.

The move is against the U.S. plan to impose duty rates of nearly 300 percent on future imports of the C Series aircraft produced by the Canadian manufacturer Bombardier Aerospace.

The foreign ministry statement issued Friday evening said Canada also filed a request for panel review over the U.S. decision to impose duties on imports of Canadian softwood lumber.

The U.S. International Trade Commission said softwood lumber imports from Canada were subsidized and hurt the U.S. industry.

The panel reviews were requested according to a dispute settlement mechanism under NAFTA Chapter 19, for a panel consisting of U.S. and Canadian trade experts to be set up and decide on whether the duties follow the U.S. trade law. Otherwise the Canadian complaints will have to go through the U.S. court system.

NAFTA Chapter 19 is Canada's major demand in the original NAFTA and remains a priority as renegotiation over the trade deal moves to Montreal next week.

The World Trade Organization (WTO) said Canada has lodged wide-ranging trade complaints against the United States over its use of anti-dumping and anti-subsidy duties against imports from Canada.