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States like Scrooge on softwood (01/05)

The Canadian softwood industry was angered and disappointed in mid-December when the United States Commerce Department decided to virtually maintain punitive trade duties on imported lumber.

The Canadian softwood industry was angered and disappointed in mid-December when the United States Commerce Department decided to virtually maintain punitive trade duties on imported lumber.

The surcharge, which came into effect by the end of the year, includes a countervailing duty of 17.18 per cent and a dumping rate of 4.03 per cent.

The result is a much smaller reduction than industry leaders were hoping for.

After the commerce department reviewed duties paid between May 2002 and April 2003, officials proposed slashing the combined duties from 27.2 per cent to 13.2 per cent.

Free Trade Lumber Council executive director Carl Grenier said the under-whelming rate cut indicates the White House wants to pressure Ottawa to resume negotiations and by extension avoid facing the issue head-on in the marketplace or the courts. Other officials are fed up with what they call an illegal trade practice.

Jamie Lim, president and CEO of the Ontario Forestry Industry Association, said the department of commerce is plainly continuing a lawless approach to countervailing duty laws.

She is confident, however, a North American Free Trade (NAFTA) Panel will overturn the new duties, as it has in the past.

The $10-billion annual industry has paid out about $3.8 billion in duties since May 2002.