Canadian Tariffs Violate Nafta?

The United States asserted Monday that Canadian tariffs on U.S. milk products, eggs, chickens and barley violate the North American Free Trade Agreement.

The contention to a special dispute resolution panel was the first in NAFTA’s three-year existence. A ruling by the five-member panel appointed by the U.S. and Canadian governments could come next summer.

U.S. producers argue that exceptionally high Canadian tariffs violate NAFTA, which took effect Jan. 1, 1994. Canada says the high tariffs are allowed under the General Agreement on Tariffs and Trade.

The two sides have been trying to negotiate a resolution to the dispute since late 1993. Last July, U.S. Trade Representative Mickey Kantor formally requested a panel of arbitrators, which was appointed last week.