Japan Files Complaint Over Canadian Tariff

Japan appealed to the World Trade Organization after Canada refused to lower tariffs on motor vehicles imported from most countries other than the U.S. Last month, Canadian Industry Minister John Manley said the government won’t drop tariffs below the 6.1% level scheduled to take effect in January without a new round of world trade talks. Japanese auto makers such as Honda Motor Co. and Toyota Motor Corp. have been calling on Canada to remove the tariff, which is higher than in the neighboring U.S. They claim it unfairly boosts the price of Japanese cars sold in Canada. “We feel that our automotive trade regime is entirely consistent with our national trade obligations,” said Dexter Bishop, spokesman for Canada’s foreign affairs department. “We believe we are on firm footing.” Vehicles made by the Big Three U.S. auto makers may be exported to Canada duty-free if they’re sold in Canada. Other foreign cars, including those of Japanese auto makers, don’t benefit from that privilege and now pay a 6.7% tariff.