The U.S. Commerce Department on Thursday announced it will impose finalized softwood lumber import duties on several Canadian firms.
The U.S. government said Canadian producers were selling into the U.S. market at less than fair value, and said Canada was providing “unfair subsidies” to domestic producers.
“While I am disappointed that a negotiated agreement could not be made between domestic and Canadian softwood producers, the United States is committed to free, fair and reciprocal trade with Canada,” said Commerce Secretary Wilbur Ross in a statement.
“This decision is based on a full and unbiased review of the facts in an open and transparent process that defends American workers and businesses from unfair trade practices,” Ross said.
The U.S. government says that exporters from Canada have sold softwood lumber in the U.S. market at 3.20 per cent to 8.89 per cent less than fair value. The Commerce Department also said Canada is providing unfair subsidies to its producers of softwood lumber at rates from 3.34 per cent to 18.19 per cent.
The U.S. Commerce Department said imports of softwood lumber from Canada in 2016 were valued at an estimated $5.66 billion U.S.
The Commerce Department’s determination must still be approved by the U.S. International Trade Commission, which is scheduled to make its final determinations around December 18, 2017.
If the ITC agrees with Thursday’s decision, the Commerce Department will issue orders to collect the duties. If the ITC finds that U.S. producers were not injured by Canadian softwood imports, the Commerce Department’s case will be terminated.