Softwood Lumber duties “unfair”

PRINCE GEORGE – Every year, BC lumber producers ship roughly $4 billion worth of lumber into the United States. But American producers have convinced the US Commerce Department to impose two forms of duties on BC: Countervailing and anti-dumping. The US argues the harvesting practices of Canadian producers constitute a subsidy. Hence the countervailing duties. Anti-dumping is different again.

“The anti-dumping duty is related more to the sort of allegation that Canada is selling its product in the US at a price that’s lower than what they’re selling into Canada or below the cost of production,” explains Kurt Niquidet, President of the BC Lumber Trade Council.

Canada has historically prevailed in this argument, but it is costing the industry a bundle, to the tune of $9 billion dollars held in deposit. But the latest round of duties is an average of 14.54%. And it couldn’t come at a worse time.