They have inflicted "unjustified harm" on the Canadian lumber industry
Canada has formally initiated a challenge against what it described as the “unwarranted and unfair” duties by the United States on Canadian softwood lumber, according to International Trade Minister Mary Ng.
“Canada is disappointed that the United States continues to impose unwarranted and unfair duties on Canadian softwood lumber,” Ng said in a statement early last month. “While the duty rates will decrease from current levels for the majority of exporters, the only truly fair outcome would be for the United States to cease applying baseless duties to Canadian softwood lumber.”
Ng added that the duties have inflicted “unjustified harm” on the Canadian lumber industry and its workers.
“[The duties] also amount to a tax on US consumers, exacerbating housing unaffordability at a time of increased supply challenges and inflationary pressures,” Ng said.
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The notice of the challenge was filed under the US-Mexico-Canada trade agreement’s dispute resolution system.
“Canada’s forestry sector is supporting hundreds of thousands of good, middle-class jobs for Canadians across the country, and we will continue to vigorously defend their interests through all available avenues, including litigation under NAFTA and CUSMA, as well as at the WTO,” Ng said.
“Canada has always been willing to work with the United States to explore ideas that could allow for a return to predictable cross-border trade in softwood lumber. We remain confident that a negotiated solution to this long-standing trade issue is in the best interests of both our countries, and we welcome an open dialogue with the United States to this end.”