Canada says USMCA panel finds U.S. solar tariffs violate trade pact

Link to Article: https://www.reuters.com/world/americas/canada-says-usmca-panel-finds-us-solar-tariffs-violate-trade-pact-2022-02-15/

The United States has a tariff on importing solar panels. Canada and Mexico were not excluded from this and thus their solar panels would be tariffed. This tariff was put in place by former United States President Donald Trump with Section 201 which were safeguard tariffs on solar panels and cells. Canada and Mexico are looking to get rid of these tariffs as they claim the tariffs do not follow the USMCA pact. A USMCA panel has found the United States to be in violation of the trade pact.

Since Canada brought up the issue of the United States being in violation of the trade pact and the USMCA found the United States to be in violation this will make it so the United States has to get rid of the tariffs or jeopardize their standing in USMCA. This is also a check on the power of the United States by showing that in the USMCA all of the members are equal and when one is in violation they will be called upon even if they are the most prosperous member.

The USMCA is a trade pact that was made in 2020 by the United States, Mexico, and Canada. This trade pact was originally the North American Free Trade Agreement. NAFTA was made in 1994 and lasted until it was replaced by USMCA. This trade agreement lifts trade barriers between the countries. The USMCA also makes it so that all of the countries involved are able to get cheaper goods while not losing jobs. The USMCA is one of the largest blocs of trading in terms of the GDP of the countries involved.

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