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Softwood Lumber

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U.S. Increases Duties On Canadian Softwood Lumber

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Canadian softwood lumber producers will see higher duties on their exports to the United States.

The U.S. Commerce Department announced Wednesday that tariffs for most producers would increase to 17.9 per cent. That is nearly double the current rate of 8.99 per cent.

In New Brunswick, J.D. Irving, Limited’s rate will nearly quadruple from 4.2 per cent to 15 per cent.

Federal Trade Minister Mary Ng said they are disappointed the U.S. has decided to increase the “unfair duties” and called on the country to eliminate them.

“These unjustified duties harm Canadian communities, businesses, and workers. They are also a tax on U.S. consumers, raising the costs of housing, renovations, and rentals at a time when housing affordability is already a significant concern for many,” Ng said in a news release Wednesday.

Ng said the federal government will continue to vigorously defend the country’s softwood lumber industry and the workers and communities it supports, “including through litigation under CUSMA’s Chapter 10, as well as NAFTA’s Chapter 19 and at the WTO.”

The trade minister noted that previous rulings have found Canada to be a fair trading partner.

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Ontario Supporting Softwood Lumber Ruling

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Ontario is welcoming a World Trade Organization panel ruling that the countervailing duties the U.S. placed on Canadian lumber exports in 2017 violates the U.S.’s WTO trade obligations.

A joint statement has been released by Minister of Economic Development, Job Creation and Trade Vic Fedeli and Minister of Natural Resources and Forestry John Yakabuski.

It states by ruling strongly in their favour, the WTO has reaffirmed their position that U.S. duties on their lumber are unjustified.

The province says the decision is an important step in ensuring the ongoing success of the forest industry in Ontario.

The government stresses it’s important to vigorously defend and support the sector and note Ontario families who rely on the forest industry have been hurt by these unfair actions.

Fedeli and Yakabuski state they will continue to work closely with the industry, the provinces and the federal government, and use all available avenues to fight unfair duties on Canadian softwood lumber.

They also believe fair and open trade is the best outcome for consumers on both sides of the border.

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Ontario Applauding Softwood Lumber Ruling

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The provincial government is claiming victory in the latest development of the softwood lumber dispute.

The North American Free Trade Agreement Chapter 19 dispute panel has ruled the underlying earlier U.S. International Trade Commission softwood lumber determination was riddled with serious errors.

The panel has directed the ITC to issue a new determination addressing several key issues and findings that the ITC got wrong in their original investigation.

A joint statement has been released by Minister of Natural Resources and Forestry John Yakabuski and Minister of Economic Development, Job Creation and Trade Vic Fedeli.

It states the PC’s were expecting the decision, stressing softwood lumber produced in Ontario has always been fairly traded across the U.S. border.

It reads Ontario will continue to strongly defend the industry, communities and workers in this unwarranted and unfair dispute.

The government says it affirms that the imposition of the current countervailing duties against Canadian exports of softwood lumber are unjustified.

(Picture: Vic Fedeli)