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Canada wins another round in softwood battle with U.S.
Last Updated Fri, 17 Mar 2006 16:32:18 EST
CBC News
Canada has won another free trade ruling in the softwood lumber dispute with the United States, the federal government says.
Canada's battle with the United States over softwood lumber tariffs has been raging since 2002.
The NAFTA decision found that Canadian softwood exports are not subsidized, the government said. That means the U.S. never had the right to impose the $5.2 billion in duties it has collected on Canadian lumber imports, a spokesperson said.
"This is a huge victory for Canada," John Allan, president of the the B.C. Lumber Trade Council, said in a release.
"This is the second NAFTA panel comprised of a majority of Americans to have unanimously ruled that there is no merit to the U.S. allegations, first regarding injury, and now regarding subsidy."
The council said the unanimous decision by three Americans and two Canadians is final, although the U.S. government can seek an "extraordinary challenge committee" to review the ruling.
The council said the decision requires the U.S. Department of Commerce, which imposed the duties, to revoke them. Moreover, the ruling will enable Canadian producers to go to the U.S. Court of International Trade to seek the return of the duties the U.S. has collected.
"The United States has taken the outrageous position that it does not have to refund money it should not have collected to begin with," Allan said.
U.S. groups reject, welcome ruling
The U.S. Coalition for Fair Lumber Imports was not happy with the ruling.
"The NAFTA panel decision issued today is gravely flawed, and signifies a potential end to an important antidote in the U.S. lumber industry's efforts to counter the poison that is Canadian lumber industry practices," coalition chairman Steve Swanson said.
The Canadian industry gets "enormous subsidies" and "we will not stand for this absurd and unjust result," he added.
But a group representing U.S. lumber consumers welcomed the ruling.
"It is clearly time for the U.S. to honor its treaty agreement with Canada, and to end these illegal duties that continue to harm American consumers," said Susan Petniunas, spokesperson for American Consumers for Affordable Homes.
The Commerce Department and U.S. industry say Canadian timber is subsidized because provinces sell it to producers at below-market prices. Some World Trade Organization rulings appear to support the U.S. position.
The Commerce Department has collected $5.2 billion in duties on Canadian exports since penalties were first imposed in 2002. The duties were cut in half, to an average of 10.81 per cent, in December.
The coalition says the dispute can only be resolved by negotiation involving "Canadian commitments to solve this unfair trade problem." It has challenged the constitutionality of NAFTA.
Canada has been willing to negotiate, but so far, no acceptable deal has emerged from the talks. The return of the duties is believed to be a sticking point.
International Trade Minister David Emerson said the ruling will strengthen Canada's position in talks with the U.S.
Last Updated Fri, 17 Mar 2006 16:32:18 EST
CBC News
Canada has won another free trade ruling in the softwood lumber dispute with the United States, the federal government says.
Canada's battle with the United States over softwood lumber tariffs has been raging since 2002.
The NAFTA decision found that Canadian softwood exports are not subsidized, the government said. That means the U.S. never had the right to impose the $5.2 billion in duties it has collected on Canadian lumber imports, a spokesperson said.
"This is a huge victory for Canada," John Allan, president of the the B.C. Lumber Trade Council, said in a release.
"This is the second NAFTA panel comprised of a majority of Americans to have unanimously ruled that there is no merit to the U.S. allegations, first regarding injury, and now regarding subsidy."
The council said the unanimous decision by three Americans and two Canadians is final, although the U.S. government can seek an "extraordinary challenge committee" to review the ruling.
The council said the decision requires the U.S. Department of Commerce, which imposed the duties, to revoke them. Moreover, the ruling will enable Canadian producers to go to the U.S. Court of International Trade to seek the return of the duties the U.S. has collected.
"The United States has taken the outrageous position that it does not have to refund money it should not have collected to begin with," Allan said.
U.S. groups reject, welcome ruling
The U.S. Coalition for Fair Lumber Imports was not happy with the ruling.
"The NAFTA panel decision issued today is gravely flawed, and signifies a potential end to an important antidote in the U.S. lumber industry's efforts to counter the poison that is Canadian lumber industry practices," coalition chairman Steve Swanson said.
The Canadian industry gets "enormous subsidies" and "we will not stand for this absurd and unjust result," he added.
But a group representing U.S. lumber consumers welcomed the ruling.
"It is clearly time for the U.S. to honor its treaty agreement with Canada, and to end these illegal duties that continue to harm American consumers," said Susan Petniunas, spokesperson for American Consumers for Affordable Homes.
The Commerce Department and U.S. industry say Canadian timber is subsidized because provinces sell it to producers at below-market prices. Some World Trade Organization rulings appear to support the U.S. position.
The Commerce Department has collected $5.2 billion in duties on Canadian exports since penalties were first imposed in 2002. The duties were cut in half, to an average of 10.81 per cent, in December.
The coalition says the dispute can only be resolved by negotiation involving "Canadian commitments to solve this unfair trade problem." It has challenged the constitutionality of NAFTA.
Canada has been willing to negotiate, but so far, no acceptable deal has emerged from the talks. The return of the duties is believed to be a sticking point.
International Trade Minister David Emerson said the ruling will strengthen Canada's position in talks with the U.S.
We want our $5.2 billion back. Pay up, deadbeats!
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