Canada

Mexico and Canada will be exempt from new U.S. tariffs on autos and auto parts the U.S. if the three NAFTA countries successfully renegotiate the deal, Mexico's ambassador to the U.S. said on Tuesday.

The U.S. has initiated World Trade Organization dispute settlement proceedings with Canada, Mexico, the European Union, Turkey and China over tariffs the countries have placed on U.S. products in response to steel and aluminum duties imposed by the U.S. earlier this year under Section 232 of the Trade Expansion Act of 1962 and justified via national security, the Office of the U.S. Trade Representative announced on Monday.

Canada's deputy ambassador said the U.S. has “shown poor leadership in all of the trade fora that we work in,” including the WTO, catalyzing a new thought process among its trading partners.

U.S. Trade Representative Robert Lighthizer issued a fresh salvo of criticism at the World Trade Organization dispute settlement system over its decision in the supercalendered paper dispute brought by Canada, blasting Ottawa for pursuing the case even after the Commerce Department revoked the countervailing paper duties and contending that the dispute abetted China.

A World Trade Organization panel has broadly found that the U.S. as a practice has improperly driven up countervailing duty rates by discovering alleged subsidies that were not disclosed by respondents during investigations, claiming those respondents are not cooperating, and applying adverse facts available.

U.S. Trade Representative Robert Lighthizer told first-term Republican House members on Wednesday that he did not plan to drop a U.S. demand for a NAFTA sunset provision, despite concerns raised by many lawmakers.

“I think we're going to get there more quickly – I think it's probably already very close – with Mexico. My concern is with our good friends to the north. And I do mean good friends. Some of my best friends are Canadians.”

“I'll have the odd conversation but no real engagement, no real negotiating session.”

“Congress delegated to the president tools to address unfair trade practices that hurt American workers, but these tools should not be used to start a reckless trade war with our closest allies.”