14 WESTERN PALLET
A preliminary decision by the U.S. Department of Commerce to reduce high tariffs on Canadian lumber imported into the U.S. is a positive move, but falls short of providing relief for the struggling B.C. industry, according to the B.C. Council of Forest Industries president Susan Yurkovich.
A preliminary finding by the U.S. on the long-festering trade dispute could see border duties cut in half. Unfortunately, the result will not be known until a final adjudication takes place in August.
For its part, the U.S. Lumber Coalition noted, "These annual reviews are a normal part of the trade law enforcement process to address the dumping and subsidization of Canadian imports for a certain time period, and the U.S. Lumber Coalition fully supports this annual process."
The combined anti-dumping and countervailing duties on all Canadian softwood lumber could fall to an average 8.21% from 20.23%. The overall reduction is broadly significant, but not all producers will receive cuts of the same size.
The heaviest import duties currently are being felt by B.C.-based companies. West Fraser shoulders duties totaling more than 23%, while Tolko’s duties total 22% and Canfor duties exceed 20%, combining countervailing and anti-dumping penalties.
As of the preliminary decision, the duty rates are set to be:
- 9.08 percent from 23.56% for West
Fraser
- 4.63 percent from 20.52% for Canfor
- 15.84% from 17.90% for Resolute
Forest Products
- 4.32% from 9.38% at J.D. Irving
- 8.21% for “all others”
The Alberta Forest Products Association said it was cautiously optimistic about the possibility of lower American tariffs on softwood lumber.
“We’ve heard these reports, we haven’t seen anything official yet, but any progress forward on this file is important to communities like Grande Prairie that have so many jobs that rely on forestry,” Brock Mulligan of AFPA told the press.
“This enforcement is necessary so that communities across America can compete on a level playing field," added Jason Brochu, U.S. Lumber Coalition Co-Chair and Co-President of Pleasant River Lumber Company. "Canada’s massive subsidies to their lumber industry have caused real harm to U.S. producers and workers. With a fair-trade environment, the U.S. lumber industry, and the 350,000 men and women who support it, is growing production to meet our country’s softwood lumber demand."
Cautious Optimism Regarding Preliminary Softwood Ruling