Nate Horner, Minister of Agriculture, Forestry and Rural Economic Development. (UCP)

By rdnewsNOW Staff

Higher Tariffs

Minister Horner calls US softwood lumber duties ‘unacceptable’

Nov 25, 2021 | 3:30 PM

Alberta’s Minister of Agriculture, Forestry and Rural Economic Development is expressing his disappointment with new duties announced on Canadian softwood lumber exports.

Nate Horner issued the following statement on the results of the softwood lumber second administrative review:

“Earlier today, the U.S. Department of Commerce announced increased rates for the forestry companies participating in the second administrative review.

“Plain and simple: higher tariffs for our forestry companies is completely unacceptable.

“Affected Alberta companies will pay between 11.12 per cent and 19.54 per cent on future exports and will be assessed additional duties between 2.15 per cent and 14.92 per cent for exports that were made between Jan. 1, 2019, and today to account for the difference in rates.

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“Alberta is home to a world-class forest sector and this has never been more evident than during the pandemic.

“The U.S. is a critical customer for us, with 91 per cent ($1.2 billion) of our softwood lumber exports going there. It’s estimated that $5.6 billion in softwood lumber duties has been collected from Canadian forestry companies since 2017.

“Any amount of duties unfairly targets our softwood lumber exports and these decreasing and then increasing rates create uncertainty on both sides of the border.

“We cannot lose sight of our ultimate goal to ensure Canadian softwood lumber is treated fairly and recognized for the benefits it creates for both countries.

“Alberta will continue to support Canada in its ongoing efforts to push for the free flow of trade to ensure prosperity for both nations and Alberta’s forest industry.”

Deputy Prime Minister Chrystia Freeland says Canada is prepared to retaliate against the American increase of duties on Canadian softwood lumber producers.

The U.S. Department of Commerce said Wednesday that its final combined anti-dumping and countervailing duty rate for most Canadian producers will be 17.9 per cent.

That is slightly below the 18.32 per cent preliminary rate issued in May but double the initial 8.99 per cent rate.

On Wednesday, International Trade Minister Mary Ng said she was disappointed by the new duty, which she said was unfair.

The B.C. Lumber Trade Council has said the increase was not unexpected but was still disappointing because U.S. producers are unable to meet domestic demand.

(With files from the Canadian Press)