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NAFTA Panel Affirms Canadian Softwood Lumber Not Subsidized, US Lumber Coalition Disagrees |
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Written by Staff/Wire Services
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Friday, 17 March 2006 |
International Trade Minister David L. Emerson today welcomed a NAFTA panel decision that affirms the U.S. Department of Commerce’s (DOC) finding—and Canada’s long-standing position—that Canadian softwood lumber production is not subsidized.
“Resolving the softwood lumber dispute is my top priority,” said Minister Emerson. “Today’s panel decision will strengthen our position as we move forward on the softwood lumber file.”
“We will be working with the provinces and industry toward a resolution that is in Canada’s best interest,” added the Minister.
On November 22, 2005, the DOC complied with the NAFTA subsidy panel’s earlier instructions and issued a determination that found that softwood lumber was subsidized at a de minimis level (0.80 percent). Under U.S. law, a de minimis subsidy finding means that countervailing duties cannot be imposed.
The countervailing duty rate currently being paid by Canadian exporters is 8.70 percent.
It is estimated that Canadian softwood lumber companies have paid over $5.2 billion
(US$4.5 billion) in countervailing duties and anti-dumping duties, of which approximately $3.7 billion (US$3.2 billion) are countervailing duties.
Canada will continue to work with the United States to ensure that it respects its NAFTA obligations and that the issue is resolved as soon as possible.
Earlier today the U.S. Coalition for Fair Lumber Imports sharply criticized the NAFTA decision. Barry Cullen, Executive Director of the Coalition said "in the absence of a negotiated settlement, we will continue to do what is necessary to ensure that U.S. laws against unfair trade are fully enforced. This includes our challenge to the constitutionality of the NAFTA Chapter 19 dispute system, which produces the type of unlawful, unjust result that we see today." |
