(Agence France Presse)
The U.S. International Trade Commission (ITC) grudgingly complied with a NAFTA trade ruling and issued a statement saying that the US lumber industry is not threatened by Canadian softwood imports.
The
quasi-judicial U.S. trade body voted in favor of the determination by five to one, responding to an order issued August 31 by the United States-Canada Binational Panel in Softwood Lumber.
"Because the
Commission respects and is bound by the NAFTA dispute settlement process, we issue a determination, consistent with the Panels decision, that the US softwood lumber industry is not threatened with material injury by
reason of subject imports from Canada," a statement said.
"In so doing, we disagree with the Panel's view that there is no substantial evidence to support a finding of threat of material injury and we
continue to view the Panels decisions throughout this proceeding as overstepping its authority, violating the NAFTA, seriously departing from fundamental rules of procedure, and committing legal error," the
statement said.
The 20-year-old US-Canada softwood dispute reemerged in 2001 after the expiration of a trade deal. A US anti-dumping investigation resulted in Washington imposing duties ranging from 2.18 percent
to 12.44 percent on Canadian softwood products in April 2002.
Washington has claimed -- and Ottawa has flatly denied -- that Canadian softwood is subsidised and that a so-called flood of Canadian imports has
been injurious to the United States.
Canada took the dispute to the World Trade Organization and the North American Free Trade Agreement (NAFTA) review panel, which rejected claims by Washington that its lumber
producers had suffered damage as a result of Canadian imports.
The panel ordered the U.S. International Trade Commission to reverse its determination on the lumber imports, which resulted in the laying of 19
percent countervailing duties on Canadian wood, within 10 days.
The World Trade Organisation had also previously ruled in Canada's favor on the matter, in one of the most significant of a string of reverses for
the US lumber industry over the issue.
The Canadian government and lumber industry were effusive in welcoming Friday's move.
"The Canadian Lumber Trade Alliance (CLTA) is pleased that the
International Trade Commission (ITC) decided on Friday to comply with the decision of the NAFTA Panel and issue a negative threat of injury decision," a statement said.
"The ITC decision is long
overdue, but it fully vindicates what the Canadian industry has said all along - imports from Canada do not threaten the U.S. industry," the Canadian Lumber Trade Alliance said.
"Without the ITC's
threat of injury finding, the U.S. does not have grounds to impose the countervailing and anti-dumping duties currently totaling 27 percent."
"We are pleased that the ITC has reached the conclusion
that Canadian softwood lumber exports do not threaten to injure the U.S. industry," Canadian Minister of International Trade and Investment Jim Peterson said late Friday.
"This determination eliminates
the basis for the US to impose anti-dumping and countervailing duties. It is now time for the US to revoke the duties imposed on Canadian softwood lumber exports and to bring an end to this dispute, a move that is long
overdue. We look to the U.S. to refund the duties paid by Canadian softwood lumber exporters as soon as possible."
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