Minister of International Trade Mary Ng participates in a news conference on the Canada-United Kingdom Trade Continuity Agreement in Ottawa, on Saturday, Nov. 21, 2020. The federal government says American duties on Canadian softwood lumber exports continue to be “unfair” and “unjustified,” even if they have been reduced. THE CANADIAN PRESS/Justin Tang

Minister of International Trade Mary Ng participates in a news conference on the Canada-United Kingdom Trade Continuity Agreement in Ottawa, on Saturday, Nov. 21, 2020. The federal government says American duties on Canadian softwood lumber exports continue to be “unfair” and “unjustified,” even if they have been reduced. THE CANADIAN PRESS/Justin Tang

Despite reduction, Canada calls U.S. softwood lumber duties ‘unfair,’ ‘unjustified’

U.S. producers have long taken issue with Canada’s system of provincially regulated stumpage fees

The federal government says American duties on Canadian softwood lumber exports continue to be “unfair” and “unjustified,” even if they have been reduced.

An administrative review by the U.S. Department of Commerce imposes countervailing duties of nearly nine per cent on certain Canadian exporters, down from just over 20 per cent.

It’s the latest salvo in one of the most persistent trade irritants between Canada and the United States, a dispute that has been raging for nearly 40 years.

The lower rate appears to be the result of a World Trade Organization decision in August that found Commerce and the U.S. International Trade Commission were wrong to impose the original duties in 2017.

International Trade Minister Mary Ng acknowledged the lower tariffs as a step in the right direction, but insisted they remain baseless and unfair.

Ng says the government will continue to seek a negotiated settlement and defend the interests of Canadian forestry companies and workers.

“While reduction in tariffs for some Canadian producers is a step in the right direction, Canada is disappointed that the United States continues to impose unwarranted and unfair duties on Canadian softwood lumber,” she said in a statement Tuesday evening.

“These duties have caused unjustified harm to Canadian businesses and workers, as well as U.S. consumers.”

U.S. producers have long taken issue with Canada’s system of provincially 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 which in the U.S. is privately owned and operated, with pricing set by the competitive marketplace.

Canadian lumber exports play a critical role in the U.S., where demand for wood products used in construction significantly outstrips the domestic supply.

The U.S. Lumber Coalition, a champion of countervailing duties against Canada, noted in a statement that the August decision by the WTO is being appealed — although the U.S. has effectively hamstrung the world body’s dispute resolution panel by refusing to appoint new members.

“It is absolutely imperative that these flawed WTO recommendations are not allowed to undermine in any way the continued enforcement of the 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.”

READ MORE: Lumber hitting record-high prices as supply lags behind demand

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

softwood lumber

Just Posted

Black Press file photo
RCMP seek suspect in Vancouver Island-wide crime spree

Crimes stretched from Deep Bay to Qualicum, Ladysmith, Chemainus and Youbou

North Cowichan’s committee of the whole have rejected staff’s recommendation to limit the use of fireworks to Halloween. (File photo)
North Cowichan rejects limiting fireworks to Halloween

Municipality decides staff recommendation would be unpopular

Things are looking up for Vancouver Island as zero COVID-19 cases have been reported for the first time since October. THE CANADIAN PRESS/Darryl Dyck
Island records zero new COVID-19 cases for the first time since October

For the first time since October, the province is reporting zero new… Continue reading

CVRD Area E director Alison Nicholson, right, hiked two hours to Waterfall Camp at the Fairy Creek watershed along with Comox town councillor Nicole Minion and Comox Valley Regional District director Daniel Arbour to meet with old-growth logging activists on Monday, June 7. (Submitted)
Cowichan Valley regional director visits Fairy Creek protest camps

‘They clearly communicated that they are committed to what they are doing’

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

Karl and Stephanie Ann Johanson were thrilled to spot a pair of Sandhill Cranes in the Panama Flats this month, an unusual appearance for such birds. (Photo by Stephanie Ann Johanson)
WATCH: Sandhill cranes an unusual, joyful sight in South Island parkland

These birds don’t often touch down on their way between northern B.C. and Mexico

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

(V.I. Trail/Google Maps)
Now 90% complete, Vancouver Island trail forges new funding parnership

Victoria Foundation takes on Vancouver Island Trail Association; fund valued at $40,000

Police are asking for public assistance in locating Anthony Graham who has been charged with the murders of Kamloops brothers Carlo and Erick Fryer. (RCMP photo)
2 charged, suspect at large in killings of B.C. brothers linked to gang activity: RCMP

Kamloops brothers Erick and Carlo Fryer were found deceased in May on a remote Okanagan road

Albert Health Minister Tyler Shandro and Alberta Premier Jason Kenney unveil an opening sign after speaking about the Open for Summer Plan and next steps in the COVID-19 vaccine rollout, in Edmonton, Friday, June 18, 2021. THE CANADIAN PRESS/Jason Franson
Alberta 1st province in Canada to lift all COVID-19 public health restrictions

70.2% of eligible citizens 12 and older in the province have received a dose of the vaccine

Fraser Health registered nurse Ramn Manan draws a dose of the Pfizer COVID-19 vaccine into a syringe at a walk-up vaccination clinic at Bear Creek Park, in Surrey, B.C., on Monday, May 17, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Honour our fathers’ with COVID-19 vaccine protection, B.C. urges

109 new cases Friday, 75 per cent of 12 and up immunized

Freighters have becomd abundant in the Trincomali Channel on the east side of Thetis Island.
Nanaimo ponders taking on waste from nearby anchored freighters

Vancouver-based Tymac petitioning the Regional District of Nanaimo to accept waste at its landfill

Most Read