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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A cargo container was knocked off a truck trying to pass under the Glover Road overpass in 2018. Crews will be working on the overpass Monday, April 12 in the evening and one eastbound lane will be temporarily closed. (Langley Advance Times files)
Highway slowdown expected Monday night in Langley for overpass work

The Glover Road overpass is getting some work done

COVID-19 virus (file photo).
Langley schools exposure list grows with latest COVID cases

As of Monday there were 14 schools on Fraser Health’s list

People have been leaving Post-It note messages for staff at the COVID-19 vaccination clinic in the Langley Events Centre. (Fraser Health Tweet)
LETTER: Langley resident lauds LEC vaccination clinic staff

Local couple impressed with everyone they encountered at the clinic set up in the local hockey arena

Have an opinion you’d like to share? Submit letters to the editor through our website, via email or the postal service. (Heather Colpitts/Black Press Media)
LETTER: Langley resident urges patience for all awaiting vaccination

Letter writer also encourages people to show their gratitude to hardworking front-line health staff

Well Seasoned gourmet food store owner Angie Quaale bought and distributed $500 worth of gift cards to a local restaurant last week, after Dr. Bonnie Henry announced the “circuit breaker” shut down of indoor seating at the end of last month. She’s hoping it will spark more people to help local restaurant and pub operators. She’s doing another giveaway starting Monday night. (Jeff Vinnick/Special to Black Press Media)
VIDEO: Gift card purchases aim to boost sales for struggling Langley restaurants

A Langley business owner tries to support fellow food entrepeneurs hit hard by pandemic restrictions

Burnaby MLA Raj Chouhan presides as Speaker of the B.C. legislature, which opened it spring session April 12 with a speech from the throne. THE CANADIAN PRESS
B.C. NDP promises more health care spending, business support in 2021 budget

John Horgan government to ‘carefully return to balanced budgets’

A youth was arrested following a car crash on Wallace Street on Saturday, April 10. (Karl Yu/News Bulletin)
Onlookers laugh and jeer as B.C. teen beaten, then forced to strip and walk home

Police arrest older teen, call video shared on social media ‘disturbing’

Surrey RCMP are seeking the public's help to locate three puppies stolen from a South Surrey home on April 10. (Surrey RCMP photos)
Puppies stolen during weekend break-and-enter in South Surrey

Surrey RCMP seeking public’s assistance in locating three American Bulldog puppies

A lady wears a sticker given out after receiving a COVID-19 vaccine at a clinic in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS
B.C.’s COVID-19 case count slows after last week’s peak

3,219 new cases since Friday, 18 additional deaths

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

North Cowichan councillor Tek Manhas did not violate the municipality’s code of conduct by posting a sexist meme on Facebook, council concludes. (File photo)
B.C. municipality to take no action against councillor who posted sexist meme

Tek Manhas’s meme doesn’t violate North Cowichan council’s code of conduct, municipality concludes

—Image: contributed
Indoor wine tastings still allowed in B.C., not considered a ‘social gathering’

“Tasting is really just part of the retail experience. The analogy I use is you wouldn’t buy a pair of pants without trying them on.”

A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. The Canadian Federation of Independent Business is raising its estimate for the number of businesses that are considering the possibility of closing permanently. THE CANADIAN PRESS/Adrian Wyld
Small business struggling amid COVID-19 pandemic looks for aid in Liberals’ budget

President Dan Kelly said it is crucial to maintain programs to help businesses to the other side of the pandemic

The National Security and Intelligence Committee of Parliamentarians says that includes attempts to steal Canadian research on COVID-19 and vaccines, and sow misinformation. (AP Photo/Esteban Felix)
Intelligence committee warns China, Russia targeting Canadian COVID-19 research

Committee also found that the terrorist threat to Canada has shifted since its last such assessment

Most Read