CANADIAN LUMBER PRODUCERS DISAPPOINTED BY REVISED U.S. DUTIES.

MONTREAL• The United States will continue to hammer imported Canadian softwood lumber, but the U.S. Commerce department said Thursday that it will impose smaller penalties than originally announced.

In its final determination, Commerce said most Canadian producers will pay a combined countervailing and anti- dumping rate of 20.83 per cent, down from 26.75 per cent in the preliminary determinations issued earlier this year.

“While I am disappointed that a negotiated agreement could not be made between domestic and Canadian softwood producers, the United States is committed to free, fair and reciprocal trade with Canada ,” U.S. Commerce Secretary Wilbur Ross said in a news release.

“This decision is based on a full and unbiased review of the facts in an open and transparent process that defends American workers and businesses from unfair trade practices.”

The Trudeau government responded by saying it will continue to defend the Canadian lumber industry against protectionist trade measures, including possibly turning to litigation.

Foreign Affairs Minister Chrystia Freeland and Natural Resources Minister Jim Carr called the punitive duties “unfair, unwarranted and deeply troubling.”

“We urge the U.S. administration to rescind these duties, which harm workers and communities in Canada,” they said in a joint statement.

Carr plans to convene the Federal- Provincial Task Force on Softwood Lumber in the coming days to discuss developments.

The preliminary duties have forced Canadian companies to pay hundreds of millions of dollars in deposits, which could be refunded if they win a final ruling by the U.S. International Trade Commission around Dec. 18.

The duties have driven up the price of lumber, adding to the cost of building a home in the United States. Canadian unions and lumber companies fear the issue will eventually cause layoffs.

West Fraser Timber Co. will continue to pay the highest duties, but its total is being cut to 23.7 per cent from 30.88 per cent.

Canfor Corp. is next at 22.13 per cent, down from 27.98, and Tolko Industries goes to 22.07 per cent from 27.03. The rate for Montrealbased Resolute Forest Products rises marginally to 17.9 per cent from 17.41 per cent and J.D. Irving’s rate inches up to 9.92 per cent from 9.89 per cent.

B.C. lumber producers said they are disappointed by the revised duties, even though they are lower. “As we have consistently said, these duties are unwarranted and this trade action is completely without merit,” said Susan Yurkovich of the B.C. Lumber Trade Council.

The U.S. imported US$ 5.66- billion worth of softwood lumber last year from Canada.