Canada to slash duties on U.S. drywall imports

Some of the money will go into package for Fort McMurray residents

Canada will slash anti-dumping duties on U.S. drywall imports after a trade panel ruled that maintaining levies imposed last fall would harm consumers and businesses, federal Finance Minister Bill Morneau announced Monday.

At the same time, some of the roughly $12 million collected since the duties were imposed in September will go toward a compensation package for residents of Fort McMurray forced to rebuild their homes after wildfires tore through the community, Morneau said after he visited a residential neighbourhood in the northern Alberta city.

“We’re pleased to be able to help people out,” said Morneau in an interview. “We know that they’re obviously facing real challenges still.”

The minister said the program will deliver about $300 to an average Fort McMurray family whose home replacement project was affected by higher drywall prices because of the tariffs. He said the money is expected to be available before year-end. Some of the funds will also go to builders and contractors in Western Canada who had to absorb unexpected higher costs to complete fixed price jobs they had already been contracted to do, Morneau said.

The duties imposed last fall were in response to a dumping complaint by French-owned CertainTeed Gypsum Canada, the last drywall (or gypsum board) manufacturer in Western Canada with plants in Vancouver, Calgary and Winnipeg, and at two gypsum quarries in B.C. and Manitoba.

The Canadian International Trade Tribunal (CITT) ruled last month that, while U.S. firms had dumped drywall in Canada at discounted prices over the past few years, maintaining duties would not be in the country’s trade interests.