Canada reprisals over lumber tariffs 'inappropriate'

Katrina Barker
May 7, 2017

United States competitors to Canadian softwood providers favour the tariff because they say that the USA government effectively offers a subsidy to Canadian firms that American companies are not able to access with existing deals.

The U.S. last month accused the Canadian government of subsidizing the softwood lumber industry and imposed tariffs as high as 20 percent.

Mr Trudeau wrote to British Columbia (BC) premier Christy Clark to say that he was "carefully and seriously" considering trade action on coal exports.

The Canadian government is threatening multiple trade actions against the United States in retaliation for duties on softwood lumber.

The government is also considering imposing duties or other trade action on several or industries, the BBC has learnt.

It's been a campaign where Christy Clark has promised to stand up for B.C.'s lumber industry in Canada's trade dispute with the USA, despite not having much say as a provincial premier in worldwide disputes.

The Canadian government has found several OR business-assistance programs it says may constitute illegal subsidies.

The first was revealed Friday by Prime Minister Justin Trudeau.

OR is the home state of Democrat Sen.

About 94 percent of thermal coal is shipped from the US through B.C. and bound for Asia where it is used in electrical generation.

Canada also is considering duties on exports from Oregon such as wine, flooring and plywood, a source close to the matter told Reuters, citing the role played by US Senator Ron Wyden, an Oregon Democrat, in pressing for the lumber tariffs.

The federal government has begun studying all business subsidies in that state, home to Democratic Sen.

The "recent preliminary decision to impose tariffs. was based on the facts presented, not on political considerations", he declared.

"Threats of retaliatory action are inappropriate and will not influence any final determinations", he continued.

Other reports by AllAboutTopnews

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