Nation's Building News Online

NAFTA Panel Questions Basis for Tariffs on Canadian Lumber

In the latest positive development against tariffs on Canadian softwood lumber, the International Trade Commission (ITC) was told last week to reconsider its earlier finding that imports into the U.S. were a threat to the health of the domestic lumber industry.

An ITC ruling in May of last year that the U.S. lumber industry was threatened with injury by imports from Canada triggered 27% tariffs on Canadian lumber that “have harmed housing affordability and American home buyers, renters and consumers,” said NAHB First Vice President Bobby Rayburn.

A 115-page decision by the North American Free Trade Agreement (NAFTA) on Sept. 5 gives the ITC 100 days to reconsider its 2002 ruling.

The NAFTA panel charged that the ITC had determined there was a threat to U.S. lumber companies “on the basis of considerable speculation and conjecture.”

Sponsored by: Countrywide Home Loans

Check it out: Countrywide offers some of the most innovative strategic alliance programs in the industry.
Discover how Countrywide's non-conforming loans can give larger borrowers an edge.

The panel noted that it was “particularly troubled by the extensive lack of analysis undertaken by the commission of the factors applicable to a determination of whether there is a threat of material injury to the domestic softwood lumber industry.”

Earlier this summer, two NAFTA panels in separate rulings found that the current countervailing and anti-dumping duties on Canadian imports are based on invalid calculations showing that Canadian producers are subsidized.

“The ITC now has an opportunity to objectively review the facts and make the right decision — that allegations of Canadian subsidies have no merit, and that Canadian trade practices offer no threat of injury to the U.S. industry,” said Rayburn.

If the ITC now concludes that there is no threat of injury, the lumber tariffs would be eliminated.

However, if the commission upholds its original ruling, NAFTA would then be left with three choices: affirm the ITC decision, order the ITC to reverse its ruling or once again compel the ITC to reconsider the case.

---

We Want to Hear From You

Let us know what you think about NBN Online. Please click here to fill out the NBN Online Readers' Survey. Thank you.
[ Go to Top ]

Sponsored by: 2-10 Home Buyer's Warranty

Need to Buy General Liability Insurance?
Confused about Subcontractor Agreements?
Structural Defects, Can They Happen to You?
Insurance Coverage a Challenge?