WTO upholds key aspects of U.S. actions against Canadian lumber

WTO upholds key aspects of U.S. actions against Canadian lumber    The World Trade Organization has once again upheld the strongest points in the United States’ position to impose countervailing duties against Canadian softwood lumber imports.
   The WTO found that Canadian provincial governments’ sale to lumber producers of timber from public lands constitutes a ‘financial contribution’ by the Canadian government — a subsidy.
   “This is a victory for both the U.S. lumber industry and the environment,” said Richard Mills, spokesman for the U.S. Trade Representative. “The WTO has once again rejected the Canadian argument that its natural subsidies do not fall within the disciplines of the WTO and therefore cannot be subject to countervailing duties under any circumstances.”
   However, the WTO panel ruled against the United States’ methodology for calculating the precise amount of countervailing duties that the country can impose and whether subsidies provided to timber harvesters “passed through” arm’s length sales to downstream users of timber.
   “The United States disagrees with the panel’s findings on those issues,” Mills said.
   Both the United States and Canada can appeal the WTO panel’s report.