“U.S. tariffs on Canadian conifers must not be maintained. They have caused undue harm to Canadian industry and U.S. consumers. U.S. builders rely on Canadian wood, and current record wood prices are affecting the economic recovery in both countries. In recent months, U.S. homebuilders have seen a dramatic rise in lumber prices, as strong demand outsands supply. Since mid-April, prices have risen by more than 130%. As a result, the average price of the new detached home increased by more than $16,000, and the price of an average new housing unit increased by more than $US 6,000. “The results of this body would prevent the United States from taking legitimate action in response to Canada`s pervasive subsidies to its coniferous industry.” M.
Ng joined Prime Minister Justin Trudeau and other government officials in saying that the U.S. has only helped drive up construction costs on both sides of the border, further hurting a timber industry already affected by climate change and other issues such as the beetle infestation. Canada-U.S. The coniferous timber dispute has become one of the most enduring trade disputes between the two nations. Over the past 25 years, the U.S. softwood lumber industry has often sought U.S. government restrictions on imports of Canadian conifers by applying U.S. countervailing duties and anti-dumping laws – laws that allow the imposition of import duties when a U.S. industry is allegedly harmed by subsidies in the exporting country (countervailing duties) or dumping. This is the case when the U.S. industry would be harmed by imported products sold at prices below costs of production or below domestic prices (anti-dumping duties). Like the aluminum sector, Canadian exports play a crucial role in the United States, where demand for wood far exceeds domestic supply.
The World Trade Organization announced that the United States has appealed a ruling that favors Canada in the ongoing dispute between the two countries over coniferous timber. In 1996, the United States and Canada entered into a five-year trade agreement, the Softwood Lumber Agreement, which formally ended Lumber III. Under its conditions, Canadian softwood lumber exports to the United States were limited to 14.7 billion board feet (34.7 million cubic metres) per year. However, when the agreement expired on 2 April 2001, the two countries were unable to agree on a replacement agreement.  “Each of the two previous timber disputes ended with neutral international tribunals that handed down judgments that forced the trade to overturn their erroneous and unreastened findings for similar reasons.” The World Trade Organization (WTO) agreement provides for a dispute settlement mechanism; A WTO panel may be requested to determine whether a country`s measures are consistent with WTO agreements. Canada used both the AD survey and the CVD survey. Canada`s international trade minister says the recently reduced tariffs on coniferous timber imported into the U.S. are “a step in the right direction,” but added that additional fees were “unjustified and unfair.” Canadian ownership of U.S. sawmills continues to grow, with the number now reaching 40 mills, up from just two a decade earlier.
West Fraser now owns more sawmills in the southern United States (16) than in Canada (13), Canfor Corp owns 11 sawmills in the south, one less than its Canadian total. . . .