(Ottawa) The federal government denounces the intention of the American Department of Commerce to increase customs tariffs on Canadian softwood lumber.
International Trade Minister Mary Ng said on Thursday that the United States had announced its intention to increase tariffs from 8.05% to 13.86%.
Mme Ng calls the decision disappointing and completely unjustified.
It’s just the latest salvo in a bilateral exchange that Ottawa describes as a drag on efforts to improve the cost and supply of housing.
PHOTO BLAIR GABLE, REUTERS
International Trade Minister Mary Ng
Last month, Minister Ng pledged to challenge the U.S. International Trade Commission’s decision to keep tariffs on Canadian softwood lumber in place.
She says Canada will fight these rights by every means available, including through litigation under existing trade agreements, as well as before the World Trade Organization and the United States Court of International Trade.
“Canada is very disappointed that the United States Department of Commerce has announced its intention to significantly increase its duties on softwood lumber from Canada,” she wrote in a press release. This measure is completely unjustified. »
“We will continue to work closely with the provinces, territories and industry to defend Canadian interests by all means available,” assures Mme Ng.
At the same time, she adds that the federal government is ready to negotiate a solution to the dispute that has marred relations between Canada and the United States for decades.
“Canada is convinced that the end of these unfair American rights will benefit both countries. We remain ready to work with the United States to find a negotiated solution that allows a return to predictable cross-border trade in softwood lumber. »
Last October, Canada welcomed the decision of a North American Free Trade Agreement dispute resolution panel, which concluded that certain aspects of the way the United States calculates duties were inconsistent with US federal law.
Under U.S. tariff law, the Commerce Department determines whether goods are sold for less than fair value or receive subsidies from foreign 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 — consider an “unfair subsidy.”