The Canadian government has approved a plan that will serve as retaliation against the United States’ trade practices, according to Reuters. Canada plans to impose a 15 percent tax on live hogs, some fish products and cigarettes.
Canada says the new tax will bring in a revenue of about $11.6 U.S. a year from the United States. The new duty will be imposed from May 1.
In August, the World Trade Organization gave the go-ahead for Canada, the European Union and others to apply trade sanctions after Washington failed to conform with a WTO ruling that it repeal a subsidy program for U.S. companies known as the Byrd Amendment.
In other pork-related trade news, the International Trade Commission’s final injury determination is expected on Thursday. Currently, all live hogs shipped from Canada to the United States have a duty placed on them that averages 10.6 percent. The final injury determination will decide if that remains permanent.
That doesn’t mean that the latest Canadian duty is retaliatory for the pork duty, it officially stems from another trade issue. But having hard feelings between the U.S. and Canadian pork industry can’t help matters.
There aren’t a great deal of hogs sent from the United States to Canada, but hopefully the two countries will continue to work to settle these disputes. Everyone speaks of an integrated North American market, but it will take more compromise and communication from both sides to make that a reality.