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| United States says it will cut softwood lumber duties |
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2005/12/9
WASHINGTON -- 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. Canada accounts for about one-third of the U.S. supply of softwood, which is easily sawed pine, spruce and other wood used in homebuilding.
"We have serious concerns about the panel's decision. However, consistent with our NAFTA obligations, we have complied with the panel's instructions," Commerce Secretary Carlos Gutierrez said. "We will continue to enforce our trade laws to ensure that U.S. industry receives relief from unfair imports, and we are reviewing all options to do so."
The decision 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 tariffs will continue to be collected during a public comment period of up to 45 days. U.S. officials also said they retain the right to appeal the ruling.
Canada's international trade minister, Jim Peterson, welcomed the ruling as a good first step, but said Canada will continue to press for the interests of its lumber industry.
"Clearly, the Bush administration has heard the vigorous appeals from Canada that they respect the terms of NAFTA," Peterson said.
But Canada was disappointed that duties will continue to be collected, and that more than $4 billion in duties paid so far have not been refunded.
"In short, this first step is encouraging, but a complete victory will not have been secured until the duties improperly collected have been returned and all future duties are eliminated," Peterson 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; in Canada, the government owns 90 percent of timberlands and charges fees for logging.
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| Source:http://www.burlingtonfreepress.com |
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