The U.S. Commerce Department announced on Tuesday that it decided to lower duties on Canadian softwood lumber imports, following its second administrative reviews. The new rate, which will average 10.81 per cent, is roughly half the current combined rate of 20.15 per cent and it will become effective before the end of December.
The new figure includes a countervailing duty of 8.7 per cent and an average anti-dumping duty of 2.11 per cent. Currently, the countervailing duty is 16.37 per cent and the anti-dumping rate is 3.78 per cent.
“The new combined countervailing and anti-dumping rate of 10.81% will save BC producers approximately a quarter of a billion U.S. dollars a year in duties,” said John Allan, president of the British Columbia Lumber Trade Council. However, Canadian producers are not yet fully satisfied, because the US will continue to apply duties on their exports, even if they are lower.
The World Trade Organization issued a ruling on Monday that supported Canada's position, saying U.S. methods are inconsistent with international rules. That ruling allows Canada to retaliate against U.S. goods if it chooses.
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