Nov 23, 2005. The U.S. department of commerce (DOC) has until November 23, 2005 to implement the NAFTA Panel’s instructions to recalculate the softwood lumber countervailing duty (CVD) rate.

BC Lumber Trade Council urges U.S. to respect NAFTA

Nov 23, 2005. /Lesprom Network/. The U.S. department of commerce (DOC) has until November 23, 2005 to implement the NAFTA Panel’s instructions to recalculate the softwood lumber countervailing duty (CVD) rate. If the DOC recalculates the CVD rate as instructed by the Panel, it should result in a de minimis (below 1%) duty rate, the repeal of the CVD order and the return to Canadian producers of all CVD cash deposits paid to date. "The DOC's recalculation of the CVD rate gives the U.S. administration another opportunity to honour its NAFTA commitments. A de minimis order would provide a signal to Canada that the U.S. is prepared to go forward in good faith to negotiate a fair and lasting solution to this dispute,” said John Allan, president of the BC Lumber Trade Council. “The BC Lumber Trade Council remains ready to pursue a long-term negotiated resolution to the softwood dispute." Following the instructions of the NAFTA Panel on October 5, the U.S. department of commerce issued on Tuesday its recalculated subsidy rate of 0.80%, which is below one percent (de minimis) meaning under U.S. law, the subsidy order must be revoked. “The BC Lumber Trade Council welcomes the U.S. Department of Commerce decision to respect the instructions given by the NAFTA Panel to recalculate the countervailing duty (CVD) rate,” said Mr. Allan. "We hope this signals that the U.S. Administration is committed to the NAFTA dispute resolution process and is serious about ending the softwood lumber dispute. We will be watching in the days and weeks ahead to see how they implement this decision.” “This decision lends further support to Canada’ position that the U.S. should return the CAD $5 billion in duties that have been illegally collected to date,” said Mr. Allan. 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.