The United States is slapping 10 per cent customs duties on four Canadian provinces on imports of softwood lumber products, saying Canada has failed to correct a breach of the softwood trade deal between the two countries.
U.S. Trade Representative Ron Kirk said in a news release that the duties will remain in place until such time as the U.S. has collected $54.8-million (U.S.).
“We regret that Canada has chosen not to meet its commitments and has made this action necessary,” Mr. Kirk said in a statement.
An offer from Canada of $36.66-million last month was not considered to have fixed the breach identified by a trade tribunal in February, according to the U.S. trade office.
A London trade tribunal ruled in February that Canada had exceeded quotas for lumber exports from Ontario, Quebec, Manitoba and Saskatchewan for the first half of 2007, and ordered Canada to start levying an additional 10 per cent tax on softwood lumber exports from the four provinces, totalling $54.8-million, to compensate fort he breach.
Companies affected by the tariffs include Domtar Inc., AbitibiBowater Inc. and Tembec Inc.
“We need to assess the situation. We were supportive of Canada's proposal [to settle the issue] and are disappointed that it was considered insufficient by the U.S.,” said AbitibiBowater spokesman Seth Kursman.
The ruling of the London Court of International Arbitrations doesn't apply to Alberta and British Columbia because mills located there pay a higher rate of tax.
10% of 0 is zero
As a former employee of a major lumber producer in north Ontario, I really hate the U.S. they crippled us with duties and tariffs then they gave us back 4 bil while keeping 1, then they destroy the world economy leaving millions worldwide out of work. Now on top of taking my job away from me they impose a tariff of 10% making a return of my job impossible