Canada is once again challenging the U.S. over its softwood lumber duties.
The most recent NAFTA challenge
centers around revised U.S. duties. The complaints follow a Dec. 14 countervailing duty administrative review in the U.S. During the review, the Americans dropped the existing duty rate less than two per cent, to 17.18
per cent.
They also reduced anti-dumping duties to just over four per cent (about one-half of the original rate) for a combined duty of 22.2 per cent.
Canada had expected a more substantial reduction --
possibly a 50 per cent cut -- after the World Trade Organization repeatedly ruled in its favour in the long-running lumber trade dispute.
The U.S. has collected about $4 billion in duties since imposing the
punitive tariffs on imports of Canadian softwood lumber two years ago.
International Trade Minister Jim Peterson said Canada would challenge U.S. actions and "ensure that the United States abides by its
international trade obligations."
Ottawa also initiated a slew of other actions related to the dispute.
The government said it had filed a notice of intent to appeal U.S. International Trade
Commission moves made in November in the U.S. Court of International Trade.
Canada has also sought from the WTO the authority to retaliate on a maximum of $200 million of American imports, in case it wins the
case brought by the U.S. over alleged provincial subisidies for Canadian forestry companies.
The figure represented the trade impact on Canadian exporters resulting from the U.S. implementation in the WTO
subsidy case.
The latest appeals will most likely take up to two years to resolve, predicts John Allan, a lumber industry spokesman.
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