Canada hammers lumber firms failing to meet softwood agreement
The Canadian government will impose a special 19 percent tax on duty refunds to Canadian lumber companies that fail to go along with a softwood lumber trade agreement recently signed with the United States, The Globe and Mail of Canada reported on Thursday.
The newspaper said Canada’s International Trade Minister David Emerson won’t allow any “free rides” for those lumber firms that benefit from the agreement’s refunds, but refuse to sign the agreement.
The Globe and Mail further reported that Canada’s Free Trade Lumber Council called the government’s action “mean spirited.”
The U.S. Coalition for Fair Lumber Imports, on the other hand, supports the terms of the softwood lumber agreement.
“Neither side got all of what it wanted, but both sides got what they needed to move forward in a positive and constructive manner,” said Steve Swanson, chairman of the council, in a recent statement. “On balance, the agreement is in the interest of U.S. sawmills and their workers.”
Canada hammers lumber firms failing to meet softwood agreement
