U.S., Canadian lumber dispute risks flare-up

The deadline for reaching a new softwood lumber trade agreement between the United States and Canada expired on Wednesday, risking the assessment of hefty U.S. duties on these imports from Canada.    The deadline for reaching a new softwood lumber trade agreement between the United States and Canada expired on Wednesday, risking the assessment of hefty U.S. duties on these imports from Canada.
   “While our engagement has yet to produce a new agreement, our governments will continue negotiations though the standstill period has expired,” said U.S. Trade Representative Michael Froman and Chrystia Freeland, Canada’s Minister of International Trade, in a joint statement.
   “The United States and Canadian governments are committed to continuing negotiations in an effort to achieve a durable and equitable solution for North American softwood lumber producers, downstream industries, and consumers,” the officials added.
   Negotiations to reach a new softwood lumber agreement between the two countries is ongoing in Washington this week.
   The so-called “standstill period,” stemming from the 2006-2015 U.S.-Canada Softwood Lumber Agreement, expired Oct. 12. During this period, members of the U.S. Lumber Coalition, which represents numerous American lumber producers and woodland operators, committed not to file petitions under the U.S. trade laws against Canadian softwood lumber imports.
   The coalition said while it continues to “strongly support” the objective of a new trade agreement identified in the June 29, 2016 Joint Statement by President Obama and Prime Minister Trudeau “to maintain Canadian exports at or below an agreed U.S. market share to be negotiated,” it now “has no choice but to move to initiate trade cases against unfairly traded imports from Canada at the most effective time.”
   The U.S. Lumber Coalition has claimed for years that Canada’s provincial governments maintain timber-sale programs that “sustain artificially high employment and production levels in their lumber industry.” According to the trade group, the provinces have provided up to U.S.$3.5 billion in annual subsidies to the Canadian lumber industry “by under-pricing government timber and have maintained policies which effectively prevent Canadian lumber companies from adjusting their production levels based on actual demand.”