Canada's softwood lumber industry suffered another blow Thursday when the U.S. International Trade Commission unanimously voted that American producers have been harmed by imports of subsidized Canadian lumber.
In a 4-0 vote, the agency sided with the U.S. lumber coalition, which complained that Canadian lumber was subsidized and that it was dumped into the American market at artificially low prices. Most Canadian producers will now pay a combined countervailing and anti-dumping rate of 20.83 per cent, down from 26.75 per cent in the preliminary determinations issued earlier this year.
Canadian producers have paid about $500 million in deposits for the duties thus far. The duties have added to the cost of building a home in the United States...
Natural Resources Minister Jim Carr said in Ottawa the duties are unnecessary and are being challenged by the Canadian government... He added the government is helping the industry by offering a support package, including loan guarantees at commercial rates, and working to expand export markets and transform the industry. He said the efforts should help to reassure the Canadian lumber industry despite the anxiety from duties...
A Resolute Forest Products spokesman said the U.S. will now hold large industry deposits as "ransom" in hope of pushing the Canadian government to sign a "bad deal."
"Sorry U.S., that's not going to happen. Canada is not going to be bullied into submission," Resolute's Seth Kursman said in an interview from Washington, D.C.
He added that the financial health of American firms is clear evidence that no injury has been suffered...
This was excerpted from 7 December 2017 edition of CTV news.