(Washington) Federal International Trade Minister Mary Ng says the North American softwood lumber standoff is putting a damper on the continent’s already limited housing supply.
Ottawa will challenge the latest decision by the United States International Trade Commission to maintain “unjustified” duties on imports of Canadian softwood lumber products.
The U.S. commission ruled in December that removing the duties would cause “significant harm” to the country’s forestry industry.
Mary Ng deplores that maintaining these rights makes no sense at a time when Canada and the United States are grappling with problems of financial accessibility and housing supply.
She says the challenge will be filed under the dispute resolution mechanism contained in the United States-Mexico-Canada Agreement (CUSMA).
Global Affairs Canada maintains that the decision to challenge the findings was made in consultation with affected provinces, stakeholders and industry leaders.
Canada is disappointed that the United States continues to impose unjustified and unfair duties on Canadian softwood lumber products.
the federal Minister of International Trade, Mary Ng, in a press release
“These duties impact our innovative Canadian softwood lumber industry. Additionally, given the significant challenges to housing supply and affordability, these duties also harm U.S. businesses and consumers who rely on Canadian softwood lumber. . »
The commission’s decision, which took effect Dec. 28, said lifting the duties “would be likely to lead to the continuation or recurrence of material injury to an industry in the United States within a reasonably foreseeable period.”
This was part of a five-year recurring proceeding to review the imposition of tariffs, as required by federal law.
In October, Canada welcomed a ruling under the North American Free Trade Agreement (NAFTA) that ruled that certain elements of the U.S.’s calculation of duties on Canadian softwood lumber are incompatible with their own legislation.
Under U.S. tariff law, the Commerce Department determines whether goods are being sold for less than fair value or are receiving subsidies from other governments.
In Canada, timber-producing provinces set stumpage fees for timber harvested on Crown land, a system that American producers – forced to pay market rates – view as an unfair subsidy.
“At every opportunity, we continue to raise the issue of unjustified U.S. duties on Canadian softwood lumber and emphasize the need to find an acceptable solution to this dispute, in the interests of both our countries and their businesses” , mentioned Mme Ng.
“Canada remains ready and willing to discuss a solution that will provide the stability and predictability the sector needs to ensure its continued growth and success. »