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Ottawa contests latest decision 'Re US Lumber Decision | Lumber Dispute' /></p>
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<p class=Minister Mary Ng is leading the issue of softwood lumber, the industry of which is the subject of a continuing conflict with the United States.


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The Canadian government is contesting the most recent decision by the United States International Trade Commission (USITC) to maintain its tariffs on Canadian lumber.

Since the resumption of the softwood lumber conflict in 2017, Canadian producers have been paying a punitive tariff to the United States to export lumber. The Americans believe that Canadian wood, which comes largely from public lands, constitutes in fact unfair competition for their forestry industry.

In a decision voted on November 30 and published in the US Federal Register on December 28, the USITC decided to maintain tariffs on timber x27;works Canadian softwood, finding that the repeal of the orders would likely result in the continuation or recurrence of dumping and countervailable subsidies.

These measures, which impose different rates depending on the company, however exclude lumber produced in the maritime provinces and certified by the Atlantic Lumber Board.

Timber conflict

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Lumber dispute

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Under this decision, in British Columbia, Canfor Corporation is assessed anti-dumping and countervailing duties at a rate of 6.61%, while West Fraser Mills Ltd. must pay combined duty of 9.25%. In New Brunswick, the conglomerate J.D. Irving Ltd. is taxed at 7.77%. The Montreal company Resolute Forest Products Canada pays the same rate as other companies, i.e. 8.24%.

For their part, new companies that have never exported softwood lumber products pay a combined rate of 20.23%, according to the Global Affairs Canada website.

This decision by the American authorities is contested under Chapter 10 of the Canada–United States–Mexico Agreement (CUSMA).

As part of these proceedings, a binational panel will be established to determine whether the decision to maintain duties on Canadian softwood lumber products was made in accordance with U.S. law.

These rights, imposed since 2018, have already been repeatedly contested by the Canadian government, which considers them unjustified and unfair, according to a press release released on January 17.

Given the significant challenges to housing supply and affordability, these duties also harm U.S. businesses and consumers who need Canadian softwood lumber, said the Minister of Export Promotion, International Trade and Economic Development, Mary Ng, in this press release, stressing the importance of finding an acceptable solution to this dispute which has lasted for more than five years.

The Canadian government says its decision was made in consultation with affected provinces as well as industry leaders.

In a written statement, British Columbia Forestry Minister Bruce Ralston calls the U.S. International Trade Commission's reasoning for maintaining tariffs absurd.

We remain open to the idea of ​​a negotiated resolution to this long-standing dispute, he said. The goal is to have partners across the border who will work with us, not against us, to make the forestry sector stronger for Canada and the United States.

Canada is the world's second largest producer of softwood lumber. In 2020, exports to the United States were worth $8.4 billion.

According to the BC Lumber Trade Council, the British Columbia accounts for 40% of the Canadian lumber industry and almost half of exports to the United States.

Meeting in Prince George, the British Columbia Forest Industry Council, which represents the industry, was unable to respond.

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