USA finds Canada lumber harms USA producers; duties to remain

08 Décembre, 2017, 01:11 | Auteur: Adelaide Bullion
  • Commission rules in favor of US lumber industry

A USA trade panel on Thursday unanimously ruled to uphold hefty duties on Canada's softwood lumber industry saying the us industry has been harmed by unfair practices.

Canadian exports of softwood lumber to the United States have impacted domestic producers, allowing the US Department of Commerce to impose duties to compensate for government subsidies and pricing below market value, according to a final Thursday ruling by the USITC.

U.S. made softwood lumber is shown for sale in Los Angeles, California, U.S., April 26, 2017.

"The U.S. Lumber Coalition fully supports the enforcement of America's trade laws", said in a statement Jason Brochu, U.S. Lumber Coalition co-chair and co-president of Pleasant River Lumber Company.

"We are disappointed by the ITC ruling and believe this is a protectionist measure created to safeguard the interests of major domestic lumber producers at the expense of American consumers".

"Imports of underpriced, subsidized Canadian softwood lumber have hurt American mills, millworkers and rural communities in OR and across the country", Wyden said.

The U.S. Lumber Coalition, an industry lobby group that petitioned the U.S. Commerce Department past year to open a dumping and subsidy investigation, lauded the decision on Thursday.

The commission made the decision in a unanimous vote on December 7.

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Canada has said the tariffs were determined using flawed methodology.

"There can be no doubt that this process is biased in favour of the USA industry".

The U.S. Commerce Department last month lowered preliminary duties.

Canada is challenging the duties under both the North American Free Trade Agreement and at the World Trade Organization.

Canada and the US are still trying to work out a new softwood trade agreement but have so far failed to reach a deal.

The statement followed a unanimous ruling by the USITC earlier on Thursday that Canadian softwood lumber exports had harmed USA producers.

Canada's attempt to quash the softwood lumber duties is in line with what observers describe as an aggressive "Canada First" approach on trade from the Liberal government led by Prime Minister Justin Trudeau, whether on issues regarding softwood lumber, aerospace and the Nafta renegotiations in general.

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