USTR Considers Removing Import Duties on Canadian Softwood Lumber

(World Trade Interactive)

The Office of the U.S. Trade Representative is inviting comments by June 14 on the possible modification or removal of import duties on Canadian softwood lumber.

In March 2008 an arbitral tribunal determined that Canada had breached certain obligations under the 2006 Softwood Lumber Agreement, and in February 2009 the tribunal issued a remedy award requiring Canada to collect an additional 10% export charge on softwood lumber shipments from Ontario, Quebec, Manitoba and Saskatchewan until a total of C$68 million was collected. Canada did not comply, however, and USTR responded by imposing 10% duties on imports of softwood lumber products subject to the SLA from the affected provinces. These duties are to remain in place until the U.S. collects $54.8 million, the U.S. dollar equivalent of C$68 million at the time.

According to USTR, the government of Canada is now taking steps toward adopting legislation requiring the collection of an additional 10% charge on subject exports. If the proposed bill becomes law (which could happen as soon as mid-June) and USTR finds that it satisfactorily grants the rights of the U.S. under the SLA, the import charges may be modified or terminated. USTR is therefore seeking public comments on the possibility of such action.