#Canada; #US; #SoftwoodLumberDutyHike; #WTO; #SoftwoodLumberExports
Ottawa/Canadian-Media: United States (U.S.) Department of Commerce's decision of Wednesday to proceed with a plan to impose double the amount of duty on softwood lumber that comes from Canada is met with great disappointment by Canadian governments and the lumber industry officials.
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The U.S. puts a tariff on all softwood lumber from Canada to raise its price at the retail level, to encourage consumers to buy American wood is based on the fact that Canadian lumber producers dump their product into the U.S. at a lower price than American lumber companies can do because they are subsidized.
"At every step of the way, rulings have found Canada to be a fair trading partner," International Trade Minister Mary Ng said in a news release, in which she expressed how "disappointed" Ottawa was in the decision.
"The United States has long relied on Canadian lumber products to meet its domestic needs for high-quality building materials...these unjustified duties harm Canadian communities, businesses, and workers...raising the costs of housing, renovations, and rentals at a time when housing affordability is already a significant concern for many," said Ng.
The U.S. is the largest single buyer of Canada's softwood lumber exports.
According to official government data Canada exports about $8 billion worth of softwood lumber to the world every year.
Canada will continue to defend the industry from the unfair tariffs, says Ng including through litigation under North American trade deal CUSMA, its predecessor NAFTA, and the World Trade Organization (WTO).
As of summer 2020, the WTO ruled in Canada's favor on the matter.