The World Trade Organization on Monday agreed to establish separate dispute settlement panels to investigate both sides of the Canada-China tariff tit-for-tat that is affecting Canadian agricultural exports.
China argues Canada is not meeting its WTO obligations in regards to duties on Chinese electric vehicles, steel, and aluminum that the Canadian government imposed last year to protect domestic jobs and align with the United States.
The Canadian government, meanwhile, is challenging China's retaliatory tariffs announced in March — duties of 100 per cent on Canadian canola meal, canola oil, and peas, as well as 25 per cent levies on Canadian pork and seafood products.
The WTO's Dispute Settlement Body agreed to set up expert panels to review both sides' claims.
The Canadian government is arguing its case should be treated as urgent since it concerns potentially perishable goods.
While both countries have filed formal disputes, the WTO's dispute settlement process remains dysfunctional at its final stage.
The panels may issue their decisions on Canada and China's challenges, but the appellate body that considers appeals before a WTO ruling becomes official has not had the required number of members to hear an appeal since 2019.
In the same meeting on Monday, a group of 130 countries proposed for the 88th time to start the process of selecting new members to the appellate body, but the proposal was blocked by the United States. Both Republican and Democratic administrations have prevented the appointment of new appellate judges since 2016, as the U.S. wants major reforms to the WTO's dispute settlement process.
Aside from the WTO, Prime Minister Mark Carney discussed the tariffs on Canadian agricultural exports with Chinese Premier Li Qiang in a meeting on June 5 where the two sides agreed to "regularize channels of communication."
"That's something we haven't had for many, many years. It's a major movement, a very positive thing," said Greg Northey, president of the Canadian Agri-Food Trade Alliance, discussing Carney's meeting with the Chinese premier on RealAg Radio.
