Hike to U.S. softwood lumber duties 'entirely unwarranted,' trade minister says

Thefederal government has lashedout attheU.S. Commerce Department over planstoraisedutieson Canadian softwood lumber.

International Trade Minister Mary Ng says the U.S. has signalled it intends to raise duties to 13.86 per cent, up from 8.05 per cent.

Ngcallsthemove disappointing and entirely unwarranted.

It's thelatest salvo in a bilateral back-and-forth that Ottawahasdescribed as a drag on effortstoimprovethecost and supply of housing.

Last month,Ngvowedtocontest aU.S.InternationalTradeCommission decisiontokeepthedutiesin place.

ShesaysCanada will fightthedutiesby every means available, including litigation through existingtradeagreements, as well astheWorldTradeOrganization andtheU.S. Court ofInternationalTrade.

WATCH | Canada challenging'unwarranted and unfair' U.S. duties on softwood lumber:

Canada officially challenging 'unfair' U.S. duties on softwood lumber

2 years ago

Duration 7:28

Canada is formally initiating a challenge of what it's deemed 'unwarranted and unfair' U.S. duties on Canadian softwood lumber under the U.S.-Mexico-Canada trade agreement's dispute resolution system.

Canada is "extremely disappointed" inthelatest finding bytheCommerce Department, Ng said. "This measure is entirely unwarranted."

Atthesame time, she said,thefederal government stands readytonegotiate a resolutiontothedispute thathasdoggedtheCanada-U.S. relationship for decades.

"We will continuetowork closely with provinces, territories and industrytodefend Canadian interests through all available avenues,"Ngsaid.

"We remain ready and willingtowork withtheUnited States toward a negotiated solution that allows for a returntopredictable cross-bordertradein softwood lumber."

UndertheU.S. Tariff Act,theDepartment of Commerce determines whether goods are being sold at less than fair value or if they're benefitingfromsubsidies provided by foreign governments.

In Canada, lumber-producing provinces set so-called stumpage fees for timber harvestedfromCrown land, a system thatU.S. producers forcedtopay market rates consider an unfair subsidy.

Duties 'hurting Canadians andAmericans alike,' B.C. says

TheB.C. government issued a similar statement Thursday, sayingtheCommerce Department decision is "deeply disappointing."

"Thecontinued application of unjustifieddutieson B.C. softwood lumber exportstotheU.S. is hurting Canadians and Americans alike," saidthejoint statement attributedtoForestsMinisterBruce Ralston, JobsMinisterBrenda Bailey, and several other officials.

"As we work with our industry partnerstodevelop a dependable and sustainable forest industry in B.C., we are continually impeded by these tariffs, leadingtohigher prices and unstable markets on both sides oftheborder."

Thevice-president oftheB.C. LumberTradeCouncil, Kurt Niquidet, also respondedtothepotential hike induties, sayingtheCommerce Departmenthas"departedfromcertain long-standing methodologies attheurging ofU.S. industry."

"Although these rates are not yet finalized, they continuetomisrepresent reality: B.C. and Canadian producers are not subsidized and are not dumping intheU.S. market,"thestatementsays.

It says the tariffs are increasing the cost of lumber and building materials south of the border, "at a time when the shortage of affordable housing is having a severe impact on families across the country."

In October, Canada cheered a decision by a NAFTA dispute panel that found aspects of how the U.S. calculates the duties are inconsistent with federal law.