A US anti-dumping investigation of Canadian softwood lumber exports should exclude wood from the Atlantic provinces of Newfoundland and Labrador, Nova Scotia and Prince Edward Island, US Secretary of Commerce Wilbur Ross announced in a press release.
The U.S. Commerce Department has imposed preliminary anti-dumping duties on Canadian softwood lumber.
U.S. customs officers will now levy on Canadian timber exports these rates along with countervailing duties, bringing tax rates from 17.41 percent to 30.88 percent, depending on the business.
"As our government announced earlier this month, we are investing $867 million to support workers and communities affected by these ill-conceived duties, diversify our forest products and global markets, and facilitate access to a range of financial services for our producers on commercial terms". The U.S. imports nearly 80 percent of Canada's softwood lumber.
The Conference Board of Canada has said USA softwood lumber duties will cost Canadian producers $1.7 billion a year and result in the reduction of 2,200 jobs.
The anti-dumping duties were a bit lower than some analysts had expected, but Trudeau said Tuesday he wasn't going to get into whether Canada's negotiating had anything to do with it.
Montreal-based Resolute continues to believe producers in Ontario and Quebec should have free access to the US market. US stocks were little changed on news of the tariffs, which were well below what the petitioners requesting the investigation had asked for. These actions hurt Canadian companies and Canadian workers, but they also hurt US homebuyers and the USA construction and renovation industry.
US producers asked the Commerce Department to investigate subsidies to Canadian competitors soon after President Donald Trump's election last November, alleging a dumping margin of 20.12% to 53.08%.
As long as Americans keep on driving to their favourite lobster joints, New Brunswick will survive this latest softwood lumber dispute with the United States.
"The ongoing allegations levelled by the US industry are without merit".
Canada has denied the U.S.'s allegations, and Prime Minister Justin Trudeau at one point said he would carefully consider retaliatory measures against the U.S. The U.S. a year ago imported more than $5 billion worth of softwood lumber from Canada.
"The ongoing allegations leveled by the US industry are without merit", Yurkovich said. "This was proven in the last round of litigation and we fully expect it will be the case again".
"BC Lumber Trade Council continues to believe that reaching a new agreement is in the best interests of producers and consumers on both sides of the border and we will continue to work closely with our provincial and federal governments to support efforts to reach a new agreement", she added.