Posted on 11/24/2005 12:40:16 AM PST by Crackingham
The Commerce Department said Tuesday it will comply with a NAFTA panel's order to drastically cut U.S. duties on imports of Canadian softwood lumber. U.S. officials said they disagree with the rationale behind the ruling, but respect its authority.
The decision, announced late Tuesday, means the United States will reduce the punitive duties, which average about 16 percent, to less than 1 percent. Separate antidumping tariffs averaging about 4 percent will not be affected.
Despite its action, the Commerce Department said it retains its right to appeal the NAFTA ruling, which it considers unfair.
"We start off with a premise that Canada subsidizes lumber," said John Sullivan, general counsel for the Commerce Department. "That's been our department's decision and we have been working off that" basis.
Sullivan said the U.S. would file a motion for clarification in an effort to get the panel to better explain its decision. Tariffs will continue to be collected while the motion is pending, he said.
The Bush administration imposed the tariffs in 2002, accusing Canada of subsidizing its lumber industry. Most U.S. timber is harvested from private land at market prices, while in Canada, the government owns 90 percent of timberlands.
With all the rebuilding needed after all these hurricanes,
knocking 16% off the cost of lumber probably has more to do with dropping this tarriff than obeying a NAFTA ruling.
It's about time that this part of the hypocrisy stopped. And on the whining, since when is a government owned business more competitive than a privately owned one?
Well I guess we know whose in charge.
This is good news. Government sales of timber in U.S. has basically been cut off by enviroweenies. If Canada wants to sell us lumber more power to them. At least they haven't gone completely around the bend.
ping
It would be nice to see the price of plywood drop a bit. It would be even nicer if the quality rose some.
I know no one cares bit I can remember when you bought a piece of plywood that was good on one side, the good side was smooth. Now even the good side sucks.
Hadn't bought plywood till recently, the worst 3/4" plywood I have ever seen. Both sides.
Its a fact. In the projects I do I have gotten so I have to use the hardwood plyboard such as birch or oak to get decent results, At sometimes as high as $80 dollars a sheet you have to cut back on making mistakes.
Hmm, Paul Martin and the Liberals are toppled Monday and the US government agrees to cut tariffs Tuesday...very interesting
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