U.S. reduces Canadian softwood lumber duties
Slight decrease not enough as Canada vows to defend against ‘protectionist’ trade moves
MONTREAL — Canadian softwood lumber producers will be hammered slightly less forcefully after the U.S. government reduced export duties for most Canadian producers following f ailed political talks.
The U.S. Department of Commerce said in its final determination, released Thursday, that most Canadian producers will pay a combined countervailing and antidumping rate of 20.83 per cent, down from 26.75 per cent in the preliminary determinations issued earlier this year.
U.S. Commerce Secretary Wilbur Ross said the revised duties were issued after the United States and Canada were unable to reach a longterm settlement to the dispute.
“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, f air and reciprocal trade with Canada,” he 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.”
Canada responded by saying it will continue to defend the lumber industry against protectionist trade measures.
“The U.S. Department of Commerce’s decision on punitive countervailing and anti-dumping duties against Canada’s softwood lumber producers is unfair, unwarranted and deeply troubling,” Foreign Aff airs Minister Chrystia Freeland and Natural Resources Minister Jim Carr said in a joint statement.
“We urge the U.S. administration to rescind these duties, which harm workers and communities in Canada. These duties are a tax on American middle class f amilies, too, whose homes, renovations and repairs will only be more expensive.”
They will turn to litigation if required to defend the industry and expects to win as it has in the past.
“We are reviewing our options, including legal action through the North American Free Trade Agreement and the World Trade Organization, and we will not delay in taking action.”
Carr plans to convene the Federal-Provincial Task Force on Softwood Lumber in the coming days to discuss developments.
The U.S. agency said Canadian producers have exported softwood lumber to the U.S. at 3.2 to 8.89 per cent less than fair value. It also determined that Canada is providing unfair subsidies to its producers at rates of 3.34 to 18.19 per cent.
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 about Dec. 18.
The duties have driven up the price of lumber to cover the extra costs, adding to the cost of building a home in the United States. Canadian unions and lumber companies fear the issue will eventually cause layoffs once prices and demand fall.
West Fraser Timber will continue to pay the highest duties, but its total is being cut to 23.7 per cent from 30.88 per cent.
Canfor is next at 22.13, down from 27.98, and Tolko at 22.07 vs. 27.03.
The rate for Montreal-based 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.
Resolute called the final determination outrageous.
“I wouldn’t be happy if it was two per cent, because it is absolutely capricious and the people this really hurts is the U.S. consumers and the U.S home builders,” spokesperson Seth Kursman said.
“They make lumber and are huge landowners, so these tariffs drive up the value of their land. It’s helping a handful of companies motivated by their own narrow self interests at the expense of the greater North American economy and millions of jobs.”
The U.S. imported $5.66 billion US worth of softwood lumber last year from Canada.