Posted on 09/11/2004 9:39:16 AM PDT by drtom
VANCOUVER (CP) -- A U.S. trade body has agreed to comply with a NAFTA panel ruling concluding Canadian softwood lumber imports are no threat to the U.S. industry.
In a response to the panel decision earlier this month, the U.S. International Trade Commission said it would conclude that "the U.S. softwood lumber industry is not threatened with material injury" by the Canadian imports.
But the commission made it clear in a statement Friday it wasn't happy about doing so.
"We disagree with the (NAFTA) panel's view that there is no substantial evidence to support a finding of threat of material injury and we continue to view the panel's decisions throughout this proceeding as overstepping its authority, violating the NAFTA, seriously departing from fundamental rules of procedure and committing legal error."
As well, the U.S. retains the right to mount a so-called extraordinary challenge under NAFTA. It has done so in the past on other matters, but has never won.
On Aug. 31, the U.S. case for levying harsh duties against Canadian softwood lumber imports took what may be a fatal blow from the North American Free Trade Agreement review panel.
The panel rejected claims allegedly subsidized Canadian lumber posed a threat of injury to American producers.
International Trade Minister Jim Peterson said he's "pleased" with the commission's decision, though federal officials acknowledged the commission's grudging tone.
"This determination eliminates the United States' basis for imposing anti-dumping and countervailing duties," Peterson said in a statement.
"It is now time for the U.S. to revoke the anti-dumping and countervailing duties imposed on Canadian softwood lumber exports and bring an end to this dispute which is long overdue."
John Allan, president of the B.C. Lumber Trade Council, said the decision means the process can now begin for the U.S. to repay $2.6 billion in duties.
"This is a home run," Allan said. "This is a case-winning decision. We won it all today with this decision."
He said if a challenge does come, he expects it by November.
But, Allan said, he doesn't see any grounds for a challenge.
"The U.S. lumber market is pretty angry with all these processes going against them," he said. "They've basically driven us to be a much more efficient Canadian industry much to their detriment."
In unusually strong language, the NAFTA panel ordered that the U.S. International Trade Commission agree the Canadian imports do not amount to a threat of injury and ordered the commission to conform to that position by Sept. 9.
This was the third time the NAFTA panel had looked at the U.S. Commerce Department's threat-of-injury argument. The panel sent back the two previous attempts for review.
It also scolded the commission for refusing to follow the NAFTA panel's instructions on the previous review, saying U.S. authorities had no fresh evidence to back their claims.
A further review would be "an exercise in futility," the panel said.
However, the U.S. continued to maintain the NAFTA panel does not have the power to order the U.S. trade body to change its findings. Also, opponents have charged one American panellist violated ethical standards in an unrelated case.
Canadian lumber producers ship about $10 billion worth of softwood a year to the United States for home construction and renovation, holding about 34 per cent of total market share.
American lumber producers have long contended Canadian imports are subsidized by low Crown timber-cutting fees, known as stumpage, and other provincial forestry policies.
In April 2001, the producers launched their fourth trade complaint in two decades, resulting an 18.79 per cent countervailing duty and an 8.2 per cent anti-dumping duty.
The levies were cut in half by a series of NAFTA rulings and recalculations by the U.S. Commerce Department. But the lower levies wouldn't take effect unless and until the duties are confirmed.
ping
Are Americans filing any cases? Give these bastards a taste of their own medicine. Go after Airbus for starters.
The economic war against America continues. It won't stop until we start fighting back.
Not when its coordinated in the EU.
I can't believe we haven't pulled out of this anti-American group. When you're the most powerful nation on Earth, you don't forfeit that power to a council of washed-up American hating bureaucrats.
When it comes to bisiness, America has no friends. Everybody wants to see the giant fall down.
I guess the fact that American lunber prices will now drop is a bad thing from your warped perspective. Us bastards are linked at the hip economically. This resolution is good for both countries and will definately ease some of the tensions.
It's one thing to give up sovereignty to from a union of states like this country did a couple hundred years ago. But to give up sovereignty through treaty in the hope of gaining international market share and living up to an ideology is just silly, maybe even suicidal.
How is it that the Canadian eco-terrorists let them get away with this?
Your concern for American consumers is touching.
Of course they are. Here ya' go: Office of the U.S. Trade Representative. You really were expecting an answer, weren't you? [chuckle]
I know. But its part of a bigger problem we face; these extraconstitutional global bodies who are knee-jerk America haters.
There is a coordinated assault to open up America, but these hypocritical bastards aren't being counter-sued by America for doing the same damn things (EU-agriculture,airbus,etc.) They subsidize worse than the US, yet all the decisions are going against the US.
I'm riled up about that. No justice,no peace!
NAFTA needs to go the way of the DODO bird.
This was a very bad idea to begin with and it's becoming a worse idea as it grows older.
Yeah, we can make-up the $300 billion of exports elsewhere. Pocket change.
We did just fine in Trade long before NAFTA existed we will do fine long after NAFTA expires.
Have we (in the USA) won even 5 cases during the existence of the WTO?
Just curious.
Ten replies earlier, you admitted that you didn't know. What happened?
Please see my #12 if you are truly curious. Education is a good thing.
I hope that the lumber duties are removed, I'm building a house and the lumber duty amounts to a 37% surcharge. That's a huge amount in the cost of the house. No one expects these charges to be removed before the end of the year, however.
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