U. S. Imposes Tariffs On Eastern Canadian Softwood Lumber
April 1, 2009 By Pulp & Paper Canada
Washington, D. C. – The United States is imposing 10% customs duties on imports of softwood lumber products from ontario, Quebec, Manitoba, and Saskatchewan, in response to what it views as Canada’s f…
Washington, D. C. – The United States is imposing 10% customs duties on imports of softwood lumber products from ontario, Quebec, Manitoba, and Saskatchewan, in response to what it views as Canada’s failure to cure a breach of the 2006 Softwood lumber agreement by imposing the compensatory measures determined by an international tribunal. the duties will remain in place until the United States has collected US$54.8 million. earlier this year, the tribunal found that Canada had breached the Sla by failing to calculate quotas properly during the first six months of 2007.
Canada has not imposed the compensatory measures determined by the tribunal – a 10% export charge until $68.26 million (US$54.8 million) has been collected. Instead, the Government of Canada has offered a payment of $46.7 million to the United States.
“At this difficult time for the industry, Canada chose this payment alternative instead of imposing an additional export charge, which would result in further mill closures and job losses in communities,” says International Trade Minister Stockwell Day.
Canada is asking the tribunal to confirm that its $46.7-million lump sum payment cures the breach in a manner consistent with the SLA. This payment is equal to the revenue the U. S. claimed their industry lost due to the breach.
The United States does not consider that such an offer cures the breach identified by the tribunal, and the U. S. government formally rejected Canada’s offer on April 2.
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