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Any number of challenges regarding softwood placed by America before the WTO have been decided in Canada's favour but that does not stop the U.S. from every few years attempting to impose countervailing duties to yet again start the whole debacle once more.
WASHINGTON, April 24, 2017 /PRNewswire-USNewswire/ -- The U.S. Department of Commerce today announced a preliminary determination in response to a petition filed in November 2016 by the Committee Overseeing Action for Lumber International Trade Investigations or Negotiations (COALITION). The United States government ruling substantiates that Canada subsidizes softwood lumber production, distorting the U.S. softwood lumber market to the detriment of U.S. sawmills, their employees and communities.
Under U.S. trade laws and its international trade agreements, the U.S. industry has a right to offsetting duties. The Department of Commerce found the following rates of subsidization: Canfor, 20.26 percent; J.D. Irving, 3.02 percent; Resolute, 12.82 percent; Tolko, 19.50 percent; West Fraser, 24.12 percent; All other producers/exporters, 19.88 percent.
The Department of Commerce is still considering U.S. industry claims that Canadian lumber is also dumped in the U.S. market. Dumping duties are added to countervailing duties imposed to offset subsidies. A preliminary antidumping ruling is scheduled for June 23, 2017.
Yep~~ This dispute has been going on for a VERY long time. Every time the Industry in US always claims Canada's dumping cheap lumber into the USA ( because it's subsidized) has never been proven. This is the 5th time in the past 40+ years. None of the previous claims got through the Arbitration levels.
March 17, 2006
No. 23
International Trade Minister David L. Emerson today welcomed a NAFTA panel
decision that affirms the U.S. Department of Commerce’s (DOC) finding—and
Canada’s long-standing position—that Canadian softwood lumber production is not
subsidized.
“Resolving the softwood lumber dispute is my top priority,” said Minister Emerson.
“Today’s panel decision will strengthen our position as we move forward on the
softwood lumber file.”
“We will be working with the provinces and industry toward a resolution that is in
Canada’s best interest,” added the Minister.
On November 22, 2005, the DOC complied with the NAFTA subsidy panel’s earlier
instructions and issued a determination that found that softwood lumber was subsidized
at a de minimis level (0.80 percent). Under U.S. law, a de minimis subsidy finding
means that countervailing duties cannot be imposed.
The countervailing duty rate currently being paid by Canadian exporters is 8.70 percent.
It is estimated that Canadian softwood lumber companies have paid over $5.2 billion
(US$4.5 billion) in countervailing duties and anti-dumping duties, of which
approximately $3.7 billion (US$3.2 billion) are countervailing duties.
Canada will continue to work with the United States to ensure that it respects its NAFTA
obligations and that the issue is resolved as soon as possible.
The Canada–U.S. softwood lumber dispute is one of the largest and most enduring trade disputes between both nations.[1] This conflict was given rise in the early 1980s and its effects are still seen today. British Columbia, the major Canadian exporter of softwood lumber to the United States, was most affected, reporting losses of 9,494 direct and indirect jobs between 2004 and 2009.[2]
The heart of the dispute is the claim that the Canadian lumber industry is unfairly subsidized by federal and provincial governments, as most timber in Canada is owned by the provincial governments. The prices charged to harvest the timber (stumpage fee) are set administratively, rather than through the competitive marketplace, the norm in the United States. In the United States, softwood lumber lots are privately owned, and the owners form an effective political lobby. The United States claims that the Canadian arrangement constitutes an unfair subsidy, and is thus subject to U.S. trade remedy laws, where foreign trade benefiting from subsidies can be subject to a countervailing duty tariff, to offset the subsidy and bring the price of the commodity back up to market rates.
National Association of Home Builders said this will add $3000 to the cost of a new home in the US. Homebuyers will pay for the tariff via higher home prices.
Its CNN for one....so taken with grain of salt 2. I would GLADLY pay 3k more as long as more AMERICANS will have or keep jobs.
Where do you get more American jobs? The lumber still comes from Canada at a higher price which drives the cost of a house up and lowers the number sold requiring less American labor.
National Association of Home Builders said this will add $3000 to the cost of a new home in the US. Homebuyers will pay for the tariff via higher home prices.
Where do you get more American jobs? The lumber still comes from Canada at a higher price which drives the cost of a house up and lowers the number sold requiring less American labor.
The higher price of Canadian lumber will cause more American lumber to be purchased. How much depends on the supply demand curve.
Where do you get more American jobs? The lumber still comes from Canada at a higher price which drives the cost of a house up and lowers the number sold requiring less American labor.
It means more AMERICAN'S will be able to work in the lumber industry since the Canadian lumber is too expensive and people won't buy it. They will buy the lumber from American companies that buy American lumber once the price goes up. Eventually only the super rich or really picky people will get the Canadian stuff because of its price the rest will buy American.
This is a rather complex issue. It's also not cut and dry. Canada basically subsidizes their timber industry via low stumpage rates and funds available for infrastructure (i.e., forest roads). But what is "Canadian" lumber? For instance a Canadian company (Irving) owns considerable lands in Maine and has a very productive mill there. I gathered logs were going across the border, sometimes from Maine to Canada sometimes the other way around and being sawn in a different country than grown. So you can have lumber sawn in Canada out of American trees or lumber sawn in the U.S. from Canadian trees.
He threatened ...I don't think it's been done yet. But this has been an ongoing issue between Canada and the US for decades, as Canada has been "dumping" their lumber products in the US at below market prices for many years, and US producers have been complaining. Trump is finally taking a stand, but last I heard he had not actually placed a Duty on the Canadian lumber as yet.
Depends. Does Trump have facts on his side on this. Just because Trump does something, doesn't mean it's wrong.
He does ...Canada has been "dumping" their forest products in the US at below market prices for decades, I read, and US producers have been complaining about it for many years, but nothing has been done about it. Trump is finally taking a stand. He is listening.
It means more AMERICAN'S will be able to work in the lumber industry since the Canadian lumber is too expensive and people won't buy it. They will buy the lumber from American companies that buy American lumber once the price goes up. Eventually only the super rich or really picky people will get the Canadian stuff because of its price the rest will buy American.
Just like any commodity> It's the supply and demand that causes any price to escalate or decline. US does not have the supply availability like Canada. Canadian populates only about a 25% ( estimated ) of it's Countries land mass. Our population is only 10% of American's. Canadians have an abundance of Forests available for harvesting, unlike USA.
Canada only trades about 30% versus American uses 70% local supply. AS American supplies deplete.. the greater the need for something outside of American borders.
Guess we will see how this repeat pushback works out. Claiming subsidies hasn't ever been a FACT proven for over 200 years... what make one think anything has changed? Yes, Canada is far more into conservation than the US is, so take very seriously cutting down our Forests. The Forests can't be arbitrarily cleared as the Government owns most of them and decides just how much can be cut down.
Trump and his lobbyists are just yet again another to try to bluster, threaten tariffs with trade partners. Let's just see how it works out in the end. Trump has been challenging pretty well all ally nations, it's just Canada's turn!
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