The European Union has launched an anti-sanction initiative against the USA and Canada. It is currently undertaking procedures with the World Trade Organisation (WTO) to rule the $126 million tariffs illegal.

Since 1999 transatlantic trade relations have been marred by the USA and Canada imposing duties on European goods such as textiles in a backlash over the EU banning imports of hormone-treated beef. While the EU has been trying to prove that the beef is harmful, the USA and Canada have refused to accept this and have upheld their sanctions. The ongoing dispute has resulted in the USA and Canada banning European products including meat.

The tension is set to increase further as fights are now breaking out over tax breaks for exports Although the WTO has ruled these breaks as illegal, the EU claims that the USA is taking too long to end them.

The EU argues that if the two countries disagree with the ban, the dispute should be referred to WTO instead of continuing with unilateral sanctions. Under WTO rules, the three countries have 60 days to formally discuss the sanctions before it can intervene.

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