NAFTA also stipulates that goods be freely traded, without import taxes, between the United States, Canada, and Mexico.
The loonie lost 0.29 of a USA cent to close at 73.72 cents United States, after American President Donald Trump imposed tariffs averaging at 20 per cent against Canadian softwood exports.
Commerce Secretary Wilber Ross said about 31.5% of hardwood and softwood in the U.S.is imported from Canada.
Canada's Liberal Party leader says the two countries are economically interconnected, but it's not a one-way relatio.
"People don't realize, Canada has been very rough on the United States", the President said to a farmers' group assembled a the White House. "Everyone thinks of Canada as being wonderful and so do I, I love Canada, but they've outsmarted our politicians for many years". So when we're the country with the deficits, we have no fear, Trump said in response to a question.
The affected Canadian firms are West Fraser Timber Co Ltd, Canfor Corp, Conifex Timber Inc, Western Forest Products Inc, Interfor Corp and Resolute FP Canada Ltd. Canada's main stock index notched a two-month high.
That argument prevailed during many softwood lumber disputes but the latest agreement has expired and in this round things have changed.
However, the premier says his suggestion in a phone call with Prime Minister Justin Trudeau was for Canada to prepare a retaliation list.
Lawsuit filed against Fox alleges racial discrimination
The show was replaced by ‚à "úTucker Carlson‚à "ôs Tonight, ‚à "ù which moved to O'Reilly's time slot Monday". Fox issued a statement saying it "vehemently denies the race discrimination claims in both lawsuits".
"We have massive trade deficits", Trump said. It all started about a year ago when Canadian regulators created a new "ingredients strategy" for products like ultrafiltered milk which now allows dairies to produce protein substances using Canadian-made milk.
"We expect the [U.S.] Department of Commerce will be issuing a statement this evening and that will tell us as to whether Nova Scotia and the Maritime exclusion is maintained", Michel Samson said Tuesday.
Ross suggested that other industries may soon be put under the Trump administration's microscope as it moves closer to renegotiating the North American Free Trade Agreement. In each case, worldwide tribunals have ruled in Canada's favour. "The accusations are baseless and unfounded".
Natural Resources Minister Jim Carr will meet this week with provincial officials to hone a joint strategy to combat the preliminary countervailing duties.
"For us, (U.S. tariffs are) a negative effect on our Canadian business, but the real loser in all of this is the USA homebuilder and USA consumer, who is looking for reasonably priced product". "The system in Canada still wants to grow the marketplace and we've been successful in doing that and the supply management system has evolved and will continue to evolve to meet our processors changing realities, as well as servicing the needs of consumers".
A U.S. homebuilder group called the ruling "shortsighted".
While Canadian officials shrugged off the U.S. offensive on softwood lumber and recent attacks by Trump on Canadian dairy exports as typical negotiation tactic, others urged Canada to get tougher.
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