U.S. rules against softwood

Canada’s softwood lumber industry suffered another blow Thursday when the U.S. International Trade Commission unanimously voted that American producers have been harmed by imports of subsidized Canadian lumber.

In a 4-0 vote, the agency sided with the U.S. lumber coalition, which complained that Canadian lumber was subsidized and that it was dumped into the American market at artificially low prices.

Most Canadian producers will now 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.

Canadian producers have paid about $500 million in deposits for the duties thus far.

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

Natural Resources Minister Jim Carr said in Ottawa the duties are unnecessary and are being challenged by the Canadian government.

“They’re wrong. We have fought them before and we’ll continue to defend Canada’s interests,” Carr said.

He added the government is helping the industry by offering a support package, including loan guarantees at commercial rates, and working to expand export markets and transform the industry.

He said the efforts should help to reassure the Canadian lumber industry despite the anxiety from duties.