America and Canada have one of the largest trade relations in the world.
President Donald Trump met with Canadian Prime Minister Justin Trudeau for the first time on Monday.
“We have a very extraordinary trade relationship with Canada.” He said.
However, the US-Canada trade relationship was not as trouble-free as you thought over the years. Trade wars, retaliation actions, dumps claims and lost jobs.
“Our trade relationship is clearly strong … But the relationship was rocky despite the agreements we have entered into force,” Stuart Trew, an editor at the Canadian Policy Alternative Center, a research group in Canada’s capital, Canada’s capital, Canada.
Trump often hit Mexico and Nafta, a trade agreement between the US, Mexico and Canada. However, Canada is rarely mentioned.
Nevertheless, there was more allegedly allegedly to the NAFTA dispute against Canada – by US companies – by US companies. Even today, Canada has harsh tariffs against the United States, and the two sides soon solved a bitter dispute on meat.
Most leaders and experts emphasize that trade between the two countries is strong and mostly positive. However, there were many wars along the way Canada and America.
Now Trump wants to negotiate Nafta, which will be at the top of the agenda to meet with Trudeau.
1. Canada has more naphtha problem than Mexico
While listening to Trump, you may think that Mexico is NAFTA’s bad actor. However, since the establishment of NAFTA in 1994, almost 39 complaints have been brought against Canada by US companies. In the industry, it allows companies known as investor state dispute settlements to resolve cases under a private naphtha Judges Panel instead of local courts in Mexico, Canada or the United States.
There are only 23 complaints against Mexico. (Compared to Company, companies from both Mexico and Canada filed a total of 21 complaints against the USA)
And more and more Canadian American complaints are the targets. According to CCPA, a Canadian research company, has been shot with 70% of the allegations of Canada NAFTA dispute since 2005.
2. USA – Canada timber war
NAFTA is not the only painful area. In 2002, the United States slapped a tariff of approximately 30% on Canada timber, claiming that it was “emptying” its wood in the US market. Canada rejected the claim and defended the cost of 30,000 business costs to timber companies.
“It was a very sour point in Canada – American relations for some time, Tom says Tom Velk, a professor of economics at Montreal, Tom.
The dispute had origins in the 1980s, when American timber companies said that Canadian colleagues did not play fair.
It is a matter of dispute whether Canada really breaks the rules.
Canadian officials deny that the government subsidized the soft wooden timber companies in Canada. American timber companies are still claiming to be and a US Commercial Department report found that Canada provided subsidies to timber companies in 2004. He didn’t say whether the subsidies continued.
Allegedly, the Canadian timber subsidized his companies because the government had many lands of wood. This subsidies – above Canada’s large timber supply – allowed Canada to pricing under what can be charged by the timber.
The World Trade Organization ultimately rejected America’s claim with Canada, and the two sides began to agree in 2006 to end the tariff.
However, this agreement and subsequent grace period ended in October and the two sides returned again. Obama and Trudeau administrations could not reach a compromise before Obama left the office and continues to be a controversial trade problem that once again calls for tariffs with US timber companies.
Related: ‘Without NAFTA’ we would be out of work
3. Smoot -hawley triggers us – Canada Trade War
During the great depression, things worsened. In 1930, the Congress wanted to protect US business from global trade. Thus, the United States slapped tariffs to all countries that send goods to the United States to protect workers.
This was called the Smoot-Hawley law. Today, it is widely accepted that this law makes great depression worse than it is.
Canada was angry and made more retaliation against the United States than all other countries and a trade war spark.
“Canada was so smoked … The new US tariff raised its own tariffs on some products that will match the new US tariff.”
For example, the US increased a tariff of 10 cents from 10 cents from 8 cents to 10 cents on the egg (ultimately prices of the 1930s). Canada made retaliation by increasing its tariff from 10 cents to 10 cents from 10 cents – a three -storey increase.
Exports decreased sharply: in 1929, the United States exported about 920,000 eggs to Canada. Three years later, according to Irwin, he sent only 14,000 eggs.
Related: Remember Smoot-Hwley: America’s last major trade war
4. Canada’s US eggs, poultry, high sky tariffs on milk
Fast so far. Smoot-Hawley has already gone, but Canada continues to receive upright tariffs for the United States’s eggs, chicken and milk imports.
For example, some tariffs on the eggs are as high as 238% per dozen, in accordance with To Canada’s agricultural department. Some milk imports are as high as 292%depending on the fat content.
Velk, “They are so troublesome that you can not bring him. Quebec does not have American eggs,” he says.
According to Canada’s Embassy in the United States, reality is very different. Officials, despite some harsh tariffs, Canada is one of the best export markets for American milk, poultry and eggs.
The US has tariffs in some goods from all countries, but not as high as Canada’s.
Experts, some of these tariffs forced to sell to the Canadian market, some milk and poultry farmers continue to continue the race, he says. However, since the tariffs have been in force for decades, they doubt that a lot will change.
Related: Trump’s Reagan tariffs that he loves to talk
5. Cooling heads and the future of NAFTA
Despite all these disputes, experts emphasize that this trade relationship is still one of the best in the world.
In fact, when the two countries are now very connected, trade disputes explode, sometimes American companies will oppose Canadian companies and US deputies.
For example, Canadian meat producers objected to a US law that required labeling where cattle were born, grew and massacred. The Canadians said the law had been discriminated against the meat and took the case to the DTO.
DTO Canada and last December, the congress, the origin-amended law abolished. American meat producers, who are intertwined with Canada, actually supported their colleagues in Canada and argued that the arrangement was very burdensome.
As for Trump’s proposal to tear NAFTA, many American and Canadian experts say that re -negotiation or termination of the agreement is not worth it. The three countries, which are part of the agreement, have grown so much that all this integration will be harmful to trade and economic growth.
-Editor’s note: This story was initially released on August 11, 2016. We’ve updated since then.
CNNMONEY (New York) First Published 13 February 2017: 11:11 AM ET
