The United States Department of Commerce is ready to increase the tasks of Canadian soft wood to 34 percent this fall, the last blow in a dispute with Canada that dates back to decades.
“We are going to need some established support measures to help us resist this storm,” said Kurt Niquidet, president of the BC Lumber Trade Council and chief economist of the BC Council of Forest Industries. “There will be some financial liquidity problems for companies, so the federal government must intensify and provide loan support to help us overcome this.”
Last Friday, the United States Department of Commerce announced its decision more than double compensatory tariffs on Canadian soft wood imports up to 14.38 percent from 6.74 percent. This adds to its decision in early March of increasing the preliminary rate in anti -dumping tasks to 20.07 percent of 7.66 percent, which raises the total of 34.45 percent.
“It is obviously very worrying,” said Ian Dunn, executive director of the Association of Forest Industries of Ontario. “Even under the existing commercial environment, with the duties that we have seen historically, we have seen companies reduce operations, we have seen companies close mills, shift and layoff reductions.”
The existing tasks in the United States have already had an impact on the Canadian wood industry. In September, based in Vancouver, he announced in September the closure of his sawmills in Vanderhoof and Fort St. John, British Columbia, citing an increasingly difficult regulatory environment, high operating costs and “punitive” rates of the United States. The decision affected 500 workers.
Dunn said the wooden dispute between Canada and the United States is now in its fifth iteration. The soft wood of soft wood in the United States of Canada 2006 was in force until 2015, and the Canadian industry has been subject to duties since 2017.
The United States argues that the Canadian wood industry has unfair competitive advantages and is subsidized because most companies operate in land owned by the provinces and Topo rates, rates companies that pay to harvest trees, are too low.
Dunn said that Canada continues to dispute this argument in cases and panels in the World Trade Organization (WTO) and the states of Canada-Mexico (Cusma), but WTO decisions in favor of Canada are not binding and efforts under Cusma remain without success.
“We have had a long and sustained legal effort that challenged and appeal virtually all the decisions of the Department of Commerce, with little or no effect,” said Dunn. “Because the mandate of the Department of Commerce is essentially to protect the national industry, they will find a discharge when they do not exist, they will find subsidies when Americans are doing exactly the same practices.”
Mark Warner, main lawyer of Maaw Law, said the dispute with the Americans has been happening since the administration of Ronald Reagan and sees a few possibilities of a resolution.
“I don’t think this dispute is able to resolve,” he said. “I don’t think you’ll see a situation in which US governments will accept dog rates.”
The president of the United States, Donald Trump, launched an investigation into wood and wood products from several countries based on national security reasons. He has also threatened more rates on Canadian wood and has signed an executive order that requires an increase in national wood production in federal lands in the United States.
The National Association of Housing Builders (NAHB), one of the largest commercial organizations that represent the interests of housing builders in the USA. UU.
“NAHB will continue to urge the White House to restart tariffs on wood and other construction materials and remain focused on improving the construction of construction materials and relieve costs for our members,” he said in a statement issued on Tuesday.
Niquidet said that Canadian soft wood constitutes 24 percent of the United States market share, which will be difficult to replace for that country.
“The United States will still need to import Canada wood,” he said. “There is simply no way that they can replace 24 percent of the market; it will take them for several years.”
Niquidet added that the new tasks will lead to price increases in the US.
• Email: jgowling@postmedia.com
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