The first salvo in the renewed Canada-U.S. softwood lumber war was fired today, and three B.C. companies are the biggest targets.
The U.S. Department of Commerce announced late in the day April 24 that it had made preliminary determination that unfair subsidization of Canada’s softwood lumber industry is distorting the American lumber market and is levying countervailing duties in the 20% range.
The U.S. Commerce Department is also still considering levying additional anti-dumping duties. A ruling on anti dumping duties is expected June 23.
Specifically named in the U.S. action are three B.C. companies: Canfor Corp. (TSX:CFP), West Fraser Timber Co. (TSX:WFT) and Tolko Industries Ltd. Also named are New Brunswick’s J.D. Irving Ltd. and Quebec’s Resolute Forest Products (TSX:RFP).
The Department of Commerce announced the following levies:
• West Fraser, 24.12%
• Canfor, 20.26%
• Tolko, 19.50%
• Resolute, 12.82%
• J.D. Irving, 3.02%.
Other unnamed exporters also face duties of 19.88%.
"Today's ruling confirms that Canadian lumber mills are subsidized by their government and benefit from timber pricing policies and other subsidies which harm U.S. manufacturers and workers," Cameron Krauss, the U.S. Lumber Coalition’s legal chairman, said in a press release.
The B.C. companies singled out for countervailing duties did not immediately respond to the action.
Canada has historically won most of its disputes over softwood lumber duties, but while they make their way to international tribunals, the companies must pay the duties on all exports to the U.S.
