Posted on 08/29/2003 4:39:16 PM PDT by Patriotways
WTO ruling stands in final softwood report
The World Trade Organization made public Friday the final report of an earlier ruling on the countervailing duties the United States has imposed on imports of Canadian softwood lumber.
The WTO decision, one of many in the long-standing $10-billion softwood lumber war between Canada and its neighbour, found that the United States failed to prove key elements of its case justifying punitive countervailing duties of 18.79 per cent on Canadian exports of softwood timber.
Essentially, the WTO recognized that provincial timber sales programs provide benefits to Canadian producers, but rejected the way the United States tallied the duty.
Canadian government spokesman André Lemay told globeandmail.com Friday that "there has not been any change" in the government's stance from when the interim WTO decision was released in May.
At the time, Ottawa said the WTO ruling would strengthen Canada's hand at the bargaining table to seek a negotiated end to the costly lumber fight.
"What we have been saying all along is that we are seeking free trade in softwood lumber. We are still looking for unfettered access to the U.S. market," Mr. Lemay said.
Now that the final WTO report has been published, one or both countries have 60 days to file an appeal, he said.
Talks between the countries to resolve the dispute have broken down.
As was the case in May, both sides were quick to call the Friday report a victory.
"This is a victory for both the U.S. lumber industry and the environment," Richard Mills, a spokesman for the U.S. Trade Representative's Office, told Reuters.
"A WTO panel has again upheld key aspects of U.S. action in the ongoing softwood lumber dispute with Canada. The panel agreed with the U.S. on the two most important points of the cases," Mr. Mills said.
John Allan, president of the B.C. Lumber Trade Council, which speaks on behalf of the major producers in the province, said Friday the report proves the U.S. countervailing tariffs violate U.S. obligations under the WTO agreements.
"The U.S. Department of Commerce has invented a subsidy where none exists," Mr. Allan said. "The WTO panel has again agreed with Canada that cross-border comparisons are invalid under international trade law."
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