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Photo: The Canadian Press
International Trade Minister Mary Ng attends a press conference on Canada-UK Trade Continuity Agreement in Ottawa on Saturday, November 21, 2020. Federal government says US tariffs on Canadian softwood timber exports continue to be “unfair “and” unjustified “, even if they have been reduced. THE CANADIAN PRESS / Justin Tang
The federal government says US tariffs on Canadian softwood exports continue to be “unfair” and “unwarranted,” even though they have been reduced.
An administrative review by the US Department of Commerce imposes countervailing duties of nearly 9% on some Canadian exporters, down from just over 20%.
It is the latest salvo in one of the most persistent trade problems between Canada and the United States, a dispute that has raged for almost 40 years.
The lower rate appears to be the result of a World Trade Organization decision in August that found that the U.S. Trade and International Trade Commission were wrong to impose the original tariffs in 2017.
International Trade Minister Mary Ng acknowledged that the lower tariffs are a step in the right direction, but insisted they remain groundless and unfair.
Ng says the government will continue to seek a negotiated solution and defend the interests of Canadian companies and forest workers.
“While tariff cuts for some Canadian producers are a step in the right direction, Canada is disappointed that the US continues to impose unfair and unfair tariffs on Canadian softwood lumber,” he said in a statement Tuesday evening.
“These duties have caused undue harm to Canadian businesses and workers, as well as to US consumers.”
US producers have long contested Canada’s system of provincial-regulated stumpage fees, which are paid to the Crown in exchange for the right to harvest timber.
They say the system unfairly subsidizes an industry that is privately owned and operated in the United States, with prices set by the competitive market.
Canadian lumber exports play a vital role in the United States, where demand for wood products used in construction significantly exceeds domestic supply.
The US Lumber Coalition, a supporter of countervailing duties against Canada, noted in a statement that the WTO’s August decision has been appealed, although the United States has effectively obstructed the global body’s dispute settlement committee by refusing to appoint new members.
“It is absolutely imperative that these erroneous WTO recommendations cannot in any way undermine the continued enforcement of trade laws,” Executive Director Zoltan van Heyningen said in a statement.
“The WTO case is far from over and, as such, it must not be allowed to influence the ongoing process and the results of the second administrative review.”
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