ITC rules on softwood dispute, more duties to come

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OTTAWA, Ont. — The U.S. International Trade Commission has made a final determination that Canadian softwood lumber exports pose a threat of injury to the U.S. industry.

Although it comes as no surprise to Canadian softwood producers and government officials, International Trade Minister, Pierre Pettigrew, was quick to condemn the decision.

"This decision was not unexpected, given the protectionist nature of U.S. softwood lumber decisions," says Pettigrew. "But that doesn’t make it any less damaging. It’s hard to understand how the U.S. Commission found threat of injury, given the stable of Canadian share of the U.S. market, the strong U.S. lumber market and U.S industry profitability."

Anti-dumping and countervailing duties on Canadian softwood are expected to be imposed by May 23, as a result of the decision, but the feds plan to fight the latest decision.

"U.S. industry has never been able to sustain its subsidy and injury allegations," says Pettigrew. "This decision is very damaging for our industry. Unfair and punitive duties will come into effect later this month. We will look hard at this newest decision and determine next steps as soon as the Commission provides its reasons."

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