The federal government on Wednesday criticized the United States for a decision to impose duties on certain softwood lumber exports and vowed to fight the move.
“The Government of Canada will continue to vigorously defend our industry and its workers against protectionist trade practices,” Foreign Affairs Minister Chrystia Freeland said in a statement.
“U.S. duties on Canadian softwood lumber are unfair, unwarranted and troubling. They are harmful to Canada’s lumber producers, workers and communities, and they add to the cost of home building, renovations and other projects for American middle-class families.”
Freeland said Canada has already begun legal challenges of these duties, ranging from about 10 per cent to nearly 24 per cent, below a preliminary range of about 17 per cent to 31 per cent, with the World Trade Organization (WTO) and through the North American Free Trade Agreement (NAFTA).
“We will continue to work with the provinces and territories, as well as with Canadian industry and workers, to find an enduring solution,” Freeland said. “Canada will also continue to engage with the U.S. Administration and with American legislators to come to a new agreement on softwood lumber.”
The U.S. Commerce Department’s decision imposes anti-dumping and anti-subsidy duties affecting about $5.66 billion US worth of lumber and comes amid increasingly acrimonious talks on renegotiating NAFTA, the trilateral trade pact between the United States, Canada and Mexico.
U.S. Commerce Secretary Wilbur Ross said he had every confidence the administration of President Donald Trump would win the trade challenges Canada has launched.
“(We) will continue to stand up against unfair trade practices that harm American workers and businesses. Even our closest allies must follow the rules,” he said in a statement.
The Commerce Department accuses Canada of unfairly subsidizing and dumping softwood lumber, which is commonly used in the construction of homes. Canada denies it is dumping the lumber.
With files from Reuters
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