U.S. to cut Canadian softwood lumber duties in half

Dec 07, 2005. /Lesprom Network/. The U.S. Department of Commerce (DOC) announced on Tuesday the final results of the second administrative reviews. These rates establish the new countervailing (CVD) and anti-dumping (AD) cash deposit rates going forward for all Canadian softwood lumber exports to the U.S. The new rates will be effective before the end of December. “The new combined CVD and AD rate of 10.81% will save British Columbian producers approximately a quarter of a billion U.S. dollars a year in duties,” said John Allan, president of the BC Lumber Trade Council.

“This is a very positive step forward as Canada fights to have the illegal duties reduced to zero,” said Mr. Allan. “Even the DOC could not sustain the rates at the previous level of 20.15%.” This victory is a result of the unending efforts by the Canadian industry, federal government and BC government to fight for fair trade in softwood lumber, which should result in the duties being revoked and the $4.3 billion in cash deposits being refunded. “The BC Lumber Trade Council appreciates prime minister Martin’s and premier Campbell’s strong defense of the Canadian softwood lumber industry, fair trade and the NAFTA. We encourage the federal and provincial governments to continue their unfaltering stance against American protectionist interests,” added Mr. Allan. The DOC assessed a CVD rate of 8.70% and an “all other’s” AD rate of 2.11%. This is a significant reduction from the current CVD rate of 16.37% and the current AD rate of 3.78%.

The administrative reviews resulted in a combined cash deposit rate of 10.81%, which is roughly half the current combined rate of 20.15%. The new countervailing cash deposit rate covers the period of investigation from April 1, 2003 to March 31, 2004. The new anti-dumping cash deposit rate covers the period of investigation from May 1, 2003 to April 30, 2004. The BC Lumber Trade Council is the voice for companies in British Columbia representing the vast majority of BC lumber production. Its member companies account for about half of Canadian lumber production and half of Canadian lumber exports to the United States.