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US Softwood Lumber Dispute
The continuing softwood lumber dispute between Canada and the US has caused problems for the BC economy. The forestry industry is one of the province's largest employers and revenue bases. Since the duties have been applied, thousand of forestry workers have lost full-time employment and forestry companies have paid millions in duties.
The dispute arose in 2001, when the US accused Canada of unfairly subsidizing its softwood lumber industry through its provincial stumpage fee systems. The US placed a preliminary 19 percent duty on Canadian softwood, later increasing the penalty to an average of 27 percent. On July 26, 2002, the World Trade Organization held that the US incorrectly imposed the original 19 percent duty. However, the US appealed the decision and continued to impose its duty.
Negotiations between the US and Canada recently broke down. Canada had agreed to a temporary export tax to replace the 27 percent duty. However, the sides failed to come to agreement on the amount of export tax and the whether the US will return the $1 billion in duties collected from Canadian lumber companies.
Since the original World Trade Organization ruling, several events have taken place:
2003
- February – Talks between the US and Canada break down on the issues concerning the amount of export tax and whether the US will return $1 billion in duties to Canadian companies.
- January – World Trade Organization rules against US Byrd Amendment that saw millions of dollars in duties paid by Canadian companies distributed to US forestry companies.
2002
- October – The federal government announces a $246 million aid package to help displaced workers, community adjustment and BC pine beetle infestation.
- September – Talks between BC Premier Campbell and US Vice-President Cheney fail to break the trade dispute.
Mapleleafweb: WTO
Rules on Canadian Softwood Lumber (Aug 2002)
Mapleleafweb:
US-Canada Dispute on Softwood Lumber (Nov 2001)
BC Lumber Trade Council
Canadian Department
of Foreign Affairs and International Trade
BC Ministry of Forests