CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Canada Takes US Lumber Dispute To WTO

Canada Takes US Lumber Dispute To WTO

by Mike Godfrey, Tax-News.com, Washington

29 November 2017


Canada has formally requested WTO consultations with the US following the latter's decision to impose anti-dumping and countervailing duties on imports of Canadian softwood lumber products.

According to a statement issued by the Canadian Government, "The US Department of Commerce's decision to impose punitive anti-dumping and countervailing duties on Canadian softwood lumber products is unfair, unwarranted, and deeply troubling."

"As the Government of Canada has said for some time, we will forcefully defend Canada's softwood lumber industry. We recently challenged the countervailing duties under Chapter 19 of the North America Free Trade Agreement, and today we are beginning litigation via the WTO."

In early November, the US Department of Commerce issued a final determination in which it stated that exporters from Canada have sold softwood lumber in the US at between 3.2 percent and 8.89 percent less than fair value. It also concluded that Canada is providing unfair subsidies to its producers at rates from 3.34 percent to 18.19 percent.

Commerce had delivered preliminary determinations in its countervailing duty and anti-dumping duty investigations in April and June, respectively. The final determinations were delayed in the hope that a negotiated settlement could be reached between the US and Canada, but Commerce said that the parties were unable to reach a mutually acceptable settlement.

US Customs and Border Protection is now required to collect cash deposits from importers of softwood lumber from Canada, based on the final rates.

Dumping occurs when goods are sold into a foreign market at below the prevailing market rate in the exporter's domestic market. Countries can respond by levying taxes on imports to prevent unfair competition for their domestic producers, known as anti-dumping duties. To counteract unfair subsidies, countries may also introduce countervailing duties.

TAGS: tax | tariffs | anti-dumping | World Trade Organisation (WTO) | trade disputes | tax rates | Canada | United States | import duty | trade | North America

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »