Canada disappointed with U.S. softwood lumber duty rate

November 26, 2021

By: The Working Forest Staff

THE CANADIAN PRESS — International Trade Minister Mary Ng and B.C.’s lumber producers say they are disappointed that the U.S. Department of Commerce has decided to increase duties on Canada’s softwood lumber producers.

The U.S. government said Wednesday that its final combined anti-dumping and countervailing duty rate for most Canadian producers will be 17.9 percent.

Ng called on the U.S. to stop imposing “these unwarranted duties” that harm Canadian communities, businesses, and workers while also raising costs of housing and renovations for U.S. consumers.

READ MORE: Canada welcomes reduced U.S. duties on softwood lumber but says ‘unfair’ fees must end

Final rates for four Canadian producers have been slightly reduced from May. The final rate for Canfor Corp. is 19.54 percent, down from 21.04 percent; West Fraser Timber Co. Inc. is 11.12 percent, down from 11.38 percent; Resolute Forest Products Inc. is 29.66 percent, down from 30.22 percent; and JD Irving is 15 percent, down from 15.82 percent.

The BC Lumber Trade Council says the final rates are not unexpected but still disappointing, especially since U.S. producers are unable to meet domestic demand.

“Our strong hope is that the U.S. industry will end this decades-long litigation and instead work with us to meet the demand for the low-carbon wood products the world wants, including American families,” stated council president Susan Yurkovich.

“Until then, we will continue to vigorously defend our industry against these meritless allegations.”

READ MORE: Canadian lumber in legal limbo as U.S. appeals WTO ruling

Ng said the Canadian government will continue to defend the softwood lumber industry including through litigation under Chapter 10 of the CUSMA trade deal with Canada, the U.S., and Mexico, NAFTA’s Chapter 19, and at the World Trade Organization.

“At every step of the way, rulings have found Canada to be a fair trading partner,” she said in a news release.

“Canada has always been willing to explore ideas that allow for a return to predictable cross-border trade in softwood lumber and remains confident that a negotiated solution to this long-standing trade issue is in the best interest of workers in both countries.” describes tariffs on Canadian softwood lumber as ‘inappropriate’

Freeland describes tariffs on Canadian softwood lumber as ‘inappropriate’ – Sep 19, 2018

Alberta Agriculture, Forestry, and Rural Economic Development Minister Nate Horner said the higher tariffs are completely unacceptable.

“Any amount of duties unfairly targets our softwood lumber exports and these decreasing and then increasing rates create uncertainty on both sides of the border,” he said in a news release.

Horner said the U.S. is a critical customer with 91 percent of softwood lumber exports valued at $1.2 billion going south.

Conservative MPs say the softwood lumber duties show that Prime Minister Justin Trudeau’s promise of a renewed relationship with the U.S. is failing.

“Instead, we got an EV tax credit that threatens Canadian auto manufacturing, stringent Buy American policies, measures targeting agricultural producers, and actions against energy pipelines _ contributing to skyrocketing energy prices. And now, the U.S. is again targeting Canada by doubling tariffs on Canadian softwood,” said Michael Chong, foreign affairs critic, and Randy Hoback, international trade critic.


Your comments.

Your #1 source for forestry and forest industry news.

Built by Sofa Communications