Ng joined Prime Minister Justin Trudeau and other government officials in saying that U.S. tariffs have only served to 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 pine beetle infestation. The United States has “failed to provide a well-founded and appropriate explanation for rejecting Canada`s proposed regional benchmarks,” said the WTO, which aims to resolve international trade disputes through multilateral rules and institutions. He asked the United States to repeat its calculations in accordance with global trade commitments. On September 28, 2020, the United States appealed the August 2020 WTO panel`s report on Canada`s challenge to U.S. countervailing duties on conifer wood. The setback for the United States comes at a time of heightened trade tensions between Washington and Ottawa, just weeks after the U.S.-Mexico-Canada free trade agreement came into force. The agreement was intended to address the shortcomings identified by the Trump administration and bring stability to two of America`s major trading partners. But this month, the United States introduced a 10% tariff on certain aluminum products in Canada. Canada announced that it would pay its own tariffs on U.S. aluminum products, such as washing machines and beverage cans. These taxes on U.S. products are expected to come into effect next month.
To learn more about the Canadian conifer wood industry and support for Canadians, please visit Natural Resources Canada Softwood Lumber. For most of these four decades, the United States and Canada, like two ferocious old loggers who worked a whip saw on a redwood, went back and forth to try to reduce an agreement on Canadian timber exports to the United States. An agreement is important for both Canada and the United States, as the United States is the largest market for Canadian conifer lumber and, from the U.S. perspective, Canada is the largest supplier. But since August, the two sides have seen themselves as far apart as they have been at any time during the long history of the timber conflict, with no solution in sight. “While this reduction in tariffs will bring urgent relief to our industry, all tariffs imposed on our softwood exports to the United States are unjustified,” he said in a statement. (f) those interested in the U.S. domestic market; companies and associations representing more than 60% of U.S. conifer wood production in 2005 submitted to USDOC the irrevocable letters described in Article V and attached to Schedule 5A on the effective date, and the United States has certified that, together, the letters account for more than 60% of U.S.
softwood production in 2005; The last agreement expired in 2015, but the United States agreed to do nothing for at least a year. The U.S. Lumber Coalition filed a complaint less than a month after the moratorium ended. In August, the three-member WTO organization found that countervailing duties to compensate Canadian subsidies were illegal because the United States had failed to demonstrate that prices paid by Canadian forestry companies on state ownership were artificially low relative to the market and had caused “significant harm” to U.S. timber companies.