FREDERICTON, N.B. — Eastern lumber producers may have escaped the U.S.-imposed countervailing duty but a new penalty slapped on Canadian lumber producers Wednesday will affect all.

The U.S. Department of Commerce has announced an anti-dumping penalty that will include no special consideration for Atlantic Canada.

The U.S. trade department feels that Canadian wood is being sold below cost in the U.S. market and the average penalty being considered is 12.58 per cent.

However, unlike the 19 per cent countervailing duties imposed this past spring, the new levies will not be retroactive and producers won’t have to start paying them until May 16 at the earliest.

New Brunswick Premier, Bernard Lord, was surprised by the announcement but he hopes something can be done to convince the U.S. to back off.

"I’m still encouraged by the fact that there are some ongoing talks scheduled between the Canadian and U.S. governments," says Lord. He adds it’s too early to tell what the impact would be on Eastern lumber producers.