Softwood Lumber Agreement Tariff

The aid came after the United States first imposed tariffs on the importation of Canadian conifer wood in April. There are several obstacles that have prevented Canada and the United States from negotiating a new agreement to replace ALS. One of the key factors is that in late summer and fall of 2015, Canada ran an election campaign in the Bundestag and had to wait for decisions of considerable magnitude after the election. Given the long history of the U.S.-Canada timber trade prior to ALS, the negotiation process is likely to be lengthy. The conifer wood industry is an important part of the Canadian and U.S. economy. Both countries have acted since 19.19.19. The conifer dispute is one of the longest and most important trade disputes between the United States and Canada, which still affect the timber industry today. Canada had filed a complaint about tariffs under Chapter 19 of the North American Free Trade Agreement (NAFTA), the dispute-edion mechanism that is binding. The complaint was recorded after U.S. President Donald Trump announced tariffs of up to 24 percent on Canadian timber in 2017.

“The U.S. wood industry will continue to insist that trade laws be enforced as much as possible in the second administrative review to give U.S. producers and workers the chance to prosper,” said coalition co-chair Jason Brochu. On April 25, 2017, the Trump administration announced plans to impose tariffs of up to 24% on most Canadian wood species and demanded that timber companies be subsidized by the government. [35] The tasks apply to the five companies: West Fraser Mills, Tolko Marketing and Sales, J. D. Irving, Canfor Corporation and Resolute FP Canada. West Fraser Mills pays the highest tax of 24%. [36] 7. “Board Foot” or “BF” refers to the volume of wood equal to a 12-inch-wide and one-foot-long card.

Nominal sizes are used for the calculation of board feet; In June, Canada announced $867 million ($640 million, $500 million) to ease the burden on the country`s timber industry. On August 24, 2020, the WTO panel, which ruled on Canada`s challenge to U.S. countervailing duties on conifer wood, released its final report. Canada welcomes the panel`s finding that U.S. countervailing duties on Canadian conifer wood are inconsistent with U.S. WTO commitments. The Canada-U.S. dispute is one of the largest and most consistent trade disputes between the two nations.

[1] This conflict was born in 1982 and its effects are still visible today.