US to impose 20 per cent duties on Canadian softwood lumber, aggravates trade dispute
WASHINGTON: US Commerce Secretary Wilbur Ross said his agency will impose new anti-subsidy duties averaging 20 per cent on Canadian softwood lumber imports, a move that escalates a long-running trade dispute between the two countries.
Speaking to Reuters by phone a day ahead of the expected announcement, Ross said that the duties would affect US$5 billion worth of softwood lumber imports from Canada.
“It’s about 31.5 per cent of the total US market, so it’s a pretty big deal in terms of the Canadian relationship,” he said.
The trade case was filed at Commerce against Canadian lumber producers by their US competitors, who argued that Canadian timber grown on public lands receives an effective subsidy from the government that is unavailable to the US firms, who cut timber grown largely on private land.
A Commerce Department fact sheet on the pending announcement seen by Reuters shows that West Fraser Mills will pay the highest duties at 24.12 per cent, followed by Canfor Corp at 20.26 per cent.
Resolute FP Canada Ltd will pay a 12.82 per cent duty, while Tolko Marketing and Sales and Tolko Industries will pay a 19.50 per cent duty and J.D. Irving Ltd, will pay 3.02 per cent.
All other Canadian producers face a 19.88 per cent duty, according to the document.
The preliminary determination directs US Customs and Border Protection to require cash deposits for the duties on all new imports as well as softwood products imported over the past 90 days. — Reuters