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Despite shortage, U.S. moves to double some Canadian lumber duties

B.C. industry says American builders, home buyers will pay
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Rail shipment of lumber from B.C.B次元官网网址檚 Interior. (Black Press Media files)

The latest U.S. government decision to more than double countervailing and anti-dumping duties on some Canadian lumber producers is the latest setback for B.C.B次元官网网址檚 industry, the largest Canadian exporter to builders south of the border.

FridayB次元官网网址檚 preliminary ruling from the U.S. Department of Commerce doesnB次元官网网址檛 take effect until a final determination is made at the end of November, but the B.C. industry group says it is a B次元官网网址渢roublingB次元官网网址 reversal of the last ruling that lowered duties for producers other than major lumber companies including Canfor and West Fraser.

B次元官网网址淚t is particularly egregious given lumber prices are at a record high and demand is skyrocketing in the U.S. as families across the country look to repair, remodel and build new homes,B次元官网网址 B.C. Lumber Trade Council president Susan Yurkovich said in a statement May 21. B次元官网网址淎s U.S. producers remain unable to meet domestic demand, the ongoing actions of the industry, resulting in these unwarranted tariffs, will ultimately further hurt American consumers by adding to their costs.B次元官网网址

The preliminary ruling would from 8.99 per cent to 18.32 per cent for imports from companies other than Canfor, West Fraser, Resolute and J.D. Irving. Canfor faces the highest rate, 21 per cent, and West FraserB次元官网网址檚 rate is 11.38 pending a final decision next fall.

B.C. Forests Minister Katrine Conroy said the duties unfair to producers in Canada and home buyers in the U.S., especially at a time when both countries are starting to recover from the COVID-19 pandemic.

B次元官网网址淣ow, more than ever, itB次元官网网址檚 essential to keep supply chains open for both sides of the border as Canada and the U.S. enter the next, post-vaccination phase of our economic recovery,B次元官网网址 Conroy said in a statement. B次元官网网址淲e need open and stable supply chains for both countries to prosper during recovery, not trade barriers.B次元官网网址

With B.C. in an advisory role, the Canadian government is challenging the duties through the World Trade Organizaiton and the Canada-U.S.-Mexico agreementB次元官网网址檚 dispute settlement mechanisms.

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