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B.C. timber not subsidized

January 31, 2005  By Pulp & Paper Canada


The Department of Commerce has concluded that British Columbia timber is not subsidized. The DOC lowered its subsid…

The Department of Commerce has concluded that British Columbia timber is not subsidized. The DOC lowered its subsidy margin in response to an earlier NAFTA panel ruling that found the DOC methodology for calculating alleged timber subsidies in Canada flawed on several accounts. The department discovered the entire country receives a subsidy of only 1.8%, less than 10% of the subsidy it originally found in May of 2002 based on illegal U.S. benchmarks. For B.C. the new rate is 0.0%. In this phase of the litigation a finding of less than 1% for all of Canada would result in the subsidy order being rescinded. However, since B.C. is subject to the all-Canada rate, the duty order remains in place.

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