Softwood Lumber Agreement Canada

The WTO`s dispute resolution body said the U.S. Department of Commerce and the U.S. International Trade Commission erred in 2017 in imposing countervailing duties on Canadian conifer timber exports after concluding that Canada`s regulated forest industry was an unfair subsidy to Canadian producers. (b) the last time the product was restored prior to export by an independent producer of softwood products, the value that would be determined by the FOB in the facility where the conifer wood used to manufacture the product went through its last primary processing; Canada is proposing a solution similar to that of the 1996 agreement: duty-free importation of the majority of conifer wood and progressive taxation above a certain threshold. A sustainable solution is not in sight, at least for now. The WTO report, which comes less than two months after the new U.S.-Mexico-Canada agreement, which formally replaced the NAFTA trade agreement, also follows the U.S. decision to restore national security duties on Canadian aluminum exports by 10 percent. The United States has accused Canada of violating the terms of the agreement that lifted tariffs on steel and aluminum in 2018. Canada is one of the world`s largest wood producers and exporters. The wood industry creates thousands of direct and indirect jobs in mechanical construction, transportation and construction. Approximately 80% of Canada`s wood production is for export, making it an important aspect of the Canadian economy.

THE 2006 ALS remains in force for a period of seven years after coming into force and may be extended, with the agreement of the contracting parties, for a further two-year period. The national stakeholders, who submitted the letters in Schedule 18, which is attached to Schedule 18 on the reference date, do not file petitions and oppose the opening of an investigation under Title VII of the Customs Act of 1930, as amended, or sections 301 to 305 of the amended Trade Act of 1974, , with respect to imports of softwood products from Canada during the 12-month period following the expiration of ALS. 2006, under this paragraph. Moreover, the United States should not initiate such measures itself during this period. This paragraph does not apply to termination under another provision of ALS 2006, including Section XX. There are several obstacles that have prevented Canada and the United States from negotiating a new agreement to replace ALS. One of the key factors is that in late summer and fall of 2015, Canada ran an election campaign in the Bundestag and had to wait for decisions of considerable magnitude after the election. Given the long history of the U.S.-Canada timber trade prior to ALS, the negotiation process is likely to be lengthy. 20-04-2020 – The United States Court of International Trade confirms the U.S. Department of Commerce`s decision not to be part of the scope of U.S.

timber rights regulations. On April 1, 2019, the U.S. Department of Commerce opened the first administrative investigation (AR1) into anti-dumping duties and countervailing duties investigations into imports of certain conifer wood products from Canada. [43] [44] The Department of Commerce provisionally established the first administrative review on February 7, 2020.

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