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Canada to examine U.S. softwood lumber duties under USMCA rules due to inadequate lumber duties
Posted on August 8, 2022 |
- The U.S. Department of Commerce reduced tariffs against most Canadian softwood producers by 8.59% compared to the current 17.91%.
- Under the new tariff schedule, Vancouver-based, Canfor's duty rate will drop to 5.87 from its current 19.54%, West Fraser Timber's rate will drop to 8.25%, while Montreal-based Resolute Forest Products Ltd.’s new tariff rate will drop to 14.86% from its current 29.66%, and Saint John-based J.D. Irving’s rate will be 7.17%.
- Canada will launch a conflict settlement process under the Canada-United States-Mexico Agreement due to inadequate US lumber duties on certain softwood lumber products
- The U.S. penalties on softwood lumber exports from Canada are lower than expected, which is a disappointment for the federal government in Ottawa.
- The final rate of 8.59% is lower than the current rate of 17.91%, as well as the 11.64% proposed in the initial decision issued earlier this year
- Canfor Corp., J.D. Irving Ltd., and West Fraser Timber Co. Ltd. will pay tariffs at lower levels than other Canadian lumber producers as the new rates are to take effect on Aug 10.
Image: Yahoo! Finance