Canadian lumber producers hammered after negotiations failed to reach deal

Joy Montgomery
November 4, 2017

"The massive subsidies the Canadian government provides to their lumber industries have caused real harm to USA producers and workers".

"We urge the U.S. Administration to rescind these duties", Freeland said in a statement.

"The Commerce Department determined that Canadian lumber producers benefited from selling into the United States below fair value and received unfair subsidies that hurt USA producers". Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.

Under the Trump administration, the US commerce department, under the guidance of Secretary Wilbur Ross continues to take a tough stance on countries that have used unfair means to promote exports.

The department also believes Canada had unfairly subsidized the lumber exports at between 3.3 percent and 18.2 percent.

Softwood lumber products, like pine, fir and spruce, are mainly used in the construction of single family houses.

But the B.C. government is also aggressively trying to push B.c. lumber into Asian markets.

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, fair and reciprocal trade with Canada", said Commerce Secretary Wilbur RossWilbur Louis RossKushner to join Trump on first half of Asia tour: "report Dem strategist: "Titans of Wall Street" in Trump admin inspire confidence China is dealing a blow to rural America, but Trump can stop it MORE.

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The final countervailing duty rate is 14.25% (a decrease from the preliminary rate 19.88%) and the final anti-dumping duty rate is 6.58% (a decrease from the preliminary rate 6.87%).

Newfoundland and Labrador is excluded from having to pay tariffs on softwood lumber headed for the United States.

"Such a claim by Canada would be ridiculous after all the efforts we and our government have put into realizing an agreement, and the inability of the Canadian industry to have a unified position on any agreement to this day", he wrote in an e-mail. Canadian wood prices grew by the amount of the tax, and USA lumber producers raised their prices as well. An earlier version said Resolute was the only producer to have its duties raised.

"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", they said.

"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", Ross said.

Foreign companies that price their products in the USA market below the cost of production or below prices in their home markets are subject to AD duties. Canadian unions and lumber companies fear the issue will eventually cause layoffs once prices and demand fall.

"We urge the USA administration to rescind these duties, which harm workers and communities in Canada", the Freeland-Carr statement said.

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