Taiwan has launched a formal trade challenge against Canada at the World Trade Organization, alleging that Ottawa’s recent steel import curbs violate WTO rules. Taiwan’s Office of Trade Negotiation confirmed the move, saying a request for consultations was submitted Monday and circulated to WTO members Thursday.
Taiwan argues that Canada breached trade commitments by imposing tariff-rate quotas on certain steel products, a 50% surtax on some steel imports, and a 25% global tariff on selected steel-derivative goods beginning in June.
According to AFP, the measures were introduced alongside similar import safeguards adopted by Canada’s allies, including Mexico and the European Union, to block low-priced Chinese steel from flooding their domestic markets.
Taiwan’s officials say the protections have had severe consequences for its exporters and threaten a sector described as strategically important to national defense and a critical source of foreign revenue.
The office estimates that Canada’s TRQs (tariff-rate quota) could cost Taiwan’s steel producers more than NT$1.7 billion ($54 million) per year, while tariffs on derivative products such as screws and nuts could total more than NT$1.3 billion annually if export volumes remain unchanged.
Taipei said it has repeatedly raised concerns with Canada through bilateral and multilateral channels, insisting the restrictions violate WTO obligations. The complaint follows appeals from the Taiwan Steel & Iron Industries Association urging diplomatic engagement to reach a mutually beneficial solution.
Under WTO procedures, both sides now have up to 60 days to negotiate through consultations. If no resolution is reached, Taiwan may request the establishment of a dispute settlement panel. The Office of Trade Negotiation noted that Canada has acknowledged Taiwan’s rights under WTO rules.
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