Ottawa, March 6, 2025 – Canada has formally requested dispute consultations with the United States at the World Trade Organization (WTO) regarding newly imposed US tariffs on Canadian goods.
The request, which was circulated to WTO members on March 5, reflects Canada’s strong opposition to these additional trade restrictions.
According to the Canadian government, the United States has imposed an ad valorem tariff of 25% on all non-energy goods and 10% on energy goods originating from Canada. Canada argues that these tariffs violate multiple provisions of the General Agreement on Tariffs and Trade (GATT) 1994 and the WTO’s Trade Facilitation Agreement (TFA).
Legal Basis for Canada’s WTO Challenge
Canada has invoked Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), along with Article XXII:1 of GATT 1994 and Article 24.8 of the TFA, to initiate consultations with the US. These tariffs, which took effect on March 4, 2025, are in addition to existing US duties under its GATT 1994 Schedule of Concessions.
The Canadian government has identified several US legal instruments used to enforce these tariff measures, including:
• Presidential Executive Orders (Nos. 14193, 14197, and March 2 Order)
• International Emergency Economic Powers Act of 1977
• National Emergencies Act
• Trade Act of 1974
Canada contends that these measures unfairly restrict its exports and violate WTO agreements, particularly GATT 1994 provisions requiring equal treatment of all member countries in trade policies.
Potential Trade Impact and Canada’s Response
The Canadian government warns that these tariffs will negatively affect various sectors, including agriculture, energy, and manufacturing, disrupting cross-border trade. As a WTO member, Canada insists that the United States comply with its trade obligations and remove these barriers.
If consultations fail to resolve the dispute, Canada may escalate the case by requesting the formation of a WTO dispute settlement panel. The government has also hinted at potential countermeasures if the US does not comply with its international trade commitments.
Canada is urging the US to engage in meaningful discussions within 10 days, given that some affected goods are perishable. The WTO dispute resolution process will determine whether these tariffs remain in place or if Canada can secure relief for its exporters.