Canada will lose 1.3 billion dollars in 2018 if a timber dispute with the EU continues

21 . DICIEMBRE 2017 Tags:  
Canadian lumber producers will lose around $ 1.3 billion in 2018 if the United States insists on imposing countervailing duties on its exports, the Conference Board of Canada warned. The agency, which analyzes public policies and economic trends, reported that the estimated amount of losses is based on the current export levels of "soft" woods that are used for the construction or remodeling of houses.

Canada needs the US market because 75 percent of its exports of softwoods annually (eight billion dollars) go to that market. The Ministry of Natural Resources of Canada, James Carr, has said that 90 percent of homes in the United States are built with softwood, but that that country only supplies 70 percent of what it requires, so Canada "provides virtually the rest. "

The Conference Board of Canada foresees that the solid price of this product will cushion the negative impact of the decision of the International Trade Commission (USITC) of the United States in the sense that an alleged subsidy to Canadian softwoods harms the industry American

The US Department of Commerce imposed a countervailing duty of 14.19 percent and an anti-dumping duty of 6.04 percent against the majority of Canadian timber entering its territory. After the imposition of a tariff of 20.23 percent

Upon importation into the United States of Canadian timber, the government of Prime Minister Justin Trudeau filed a commercial complaint before a panel of Chapter 19 of the North American Free Trade Agreement (NAFTA) and another before the World Trade Organization (WTO). ).

The Canadian agency does not rule out that the tariffs paid by Canadian loggers will vary if the US demand is lower than expected, which would affect the volume of exports.

Currently, softwood prices maintain a good performance, similar to the level of 2004, although if demand decreases at the beginning of 2018, the Canadian industry would begin to suffer the negative impact of US tariffs.

At the end of this 2017, the Canadian timber exporters will have paid 500 million dollars for compensatory tariffs to the United States. Some of the most affected Canadian companies are: West Fraser Timber with a tariff of 23.56 percent; Canfor Corp, with 20.52; Tolko Industries with 22.07; Resolute with 17.90; and J.D. Irving with 9.92. Some antidumping duties were imposed on November 8, while others will be imposed at the end of December or beginning of next January.