USTR and Canadian Counterpart Discuss Trade Irritants, Forced Labor, Climate Change

The day before the first USMCA Free Trade Commission meeting, U.S. Trade Representative Katherine Tai and Canada's trade minister, Mary Ng, talked about how to strengthen North American supply chains, combat forced labor and climate change, and reform the World Trade Organization.

The U.S. readout of the May 17 video call said Tai stressed the importance of Canada "fully meeting its USMCA commitments, including its allocation of dairy tariff-rate quotas and home-shopping. Ambassador Tai also expressed concern about Canada’s recently proposed digital service tax." Home-shopping refers to Canada's raising of its de minimis level under USMCA.

The Canadian readout said Ng raised solar safeguards, the importance of allowing a petroleum pipeline to continue operation through the Great Lakes, and Buy America. Canada has some ability to participate in government procurement now. Michigan says it plans to close the pipeline over environmental dangers. Canadian solar panels are subject to the Section 201 case, even though under NAFTA they are not supposed to be.

Both said they talked about softwood lumber; the Canadian readout said: "Minister Ng reiterated that it was in the best interest of both countries to reach an agreement on softwood lumber." Tai has previously told Congress that Canada was not interested in negotiating an agreement on softwood lumber that would end the countervailing duties on Canadian lumber exports.