Lumber tariffs urged by U.S.

U.S. lumber producers called for the government to impose punitive tariffs on imports from Canada, reigniting a trade dispute that had been dormant for a decade.

The U. S. i ndustry has filed a petition that asks to impose duties to offset the harm caused by Canadian softwood- lumber subsidies and “producers dumping subsidized merchandise on the U. S. market,” the U. S. Lumber Coalition said Friday in a statement.

The group alleges Canadian timber is heavily subsidized and i mports are harming U. S. mills and workers.

A previous trade deal between the countries ended in October 2015. A subsequent 12-month moratorium in which Canada was able to continue to ship lumber tariff- free expired Oct. 12 as both sides failed to reach a new accord.

The U. S. Lumber Coalition, which represents producers and woodland owners, reiterated Oct. 12 that any new trade agreement should maintain Canadian exports at or below an agreed U. S. market share to be negotiated. Producers in British Columbia have argued for an ability to choose between an export tax model and a restriction on volumes, similar to the structure of the 2006 agreement.

Canada appears willing to battle the imposition of a duty rather than accept a bad, negotiated deal, Joshua Zaret, a Bloomberg Intelligence analyst, said in an Oct. 5 report.

It could take until late March for a preliminary countervailing duty to be determined, he said.