A preliminary decision to reduce steep border tariffs on Canadian lumber imports is a step in the right direction, but a long way from relief for the struggling B.C. industry, the B.C. Council of Forest Industries says.

A preliminary finding by the U.S. Commerce Department on the long-running trade dispute could cut the border duties by half, but that wonB次元官网网址檛 be clear until a final adjudication in August, COFI president Susan Yurkovich said Wednesday.

And the ruling is for B次元官网网址渁dministrative review one,B次元官网网址� a period ending in 2019 when the North American lumber industry was making its highest returns ever. B次元官网网址淎dministrative review twoB次元官网网址� began on Jan. 1, and could result in further penalties on CanadaB次元官网网址檚 producers.

B次元官网网址淚tB次元官网网址檚 Groundhog Day,B次元官网网址� Yurkovich said of the continuing claims of B次元官网网址渄umpingB次元官网网址� and B次元官网网址渋njuryB次元官网网址� coming from U.S. producers. B次元官网网址淲e continue to keep fighting but itB次元官网网址檚 a very long process and it doesnB次元官网网址檛 provide immediate relief to our industry.B次元官网网址�

The heaviest import duties fall on B.C.-based companies, with West Fraser facing a total of more than 23 per cent. Tolko is penalized 22 per cent and Canfor duties total more than 20 per cent, combining countervailing and anti-dumping penalties.

The latest finding has one glimmer of hope for B.C., Yurkovich said.

B次元官网网址淭he one positive is that theyB次元官网网址檙e finally starting to recognize that there might be a difference for beetle-killed wood,B次元官网网址� she said. B次元官网网址淭hey had never recognized that before and they didnB次元官网网址檛 include any provision for that.B次元官网网址�

The U.S. Lumber Coalition issued indicating it is undeterred by the preliminary finding, and applauding the continued investigation.

B次元官网网址淭he U.S. softwood lumber industry is pleased that the U.S. government is fully enforcing our trade laws,B次元官网网址� said Jason Brochu, co-chair of the U.S. coalition. B次元官网网址淐anadaB次元官网网址檚 massive subsidies to their lumber industry have caused real harm to U.S. producers and workers. The U.S. lumber industry will continue to push for the full enforcement of the U.S. trade laws during this ongoing process.B次元官网网址�

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Another decision is expected from CanadaB次元官网网址檚 appeal to the World Trade Organization, which held two hearings in 2019. The WTO has ruled in CanadaB次元官网网址檚 favour in previous rounds, on U.S. claims that buying Crown-owned timber represents an unfair subsidy to Canadian construction materials.

The first round was in 1982, and the fifth remains in place in 2020.

In the meantime, companies continue to pay penalties into a U.S. government fund.

B次元官网网址淲hen all of the appeals are exhausted and all of the administrative reviews are completed, in theory those cash deposits are refunded to the companies,B次元官网网址� Yurkovich said. B次元官网网址淚tB次元官网网址檚 their business strategy. Harm your competitors rather than getting more efficient or focusing on growing the market.B次元官网网址�

tfletcher@blackpress.ca
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