US may impose duties on sawn softwood from Canada

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Fordaq
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The Softwood Lumber Agreement between Canada and the US expired in October 2015 and the one-year period of tariff-free trade passed without a new agreement. The previous agreement limited Canadian access to the US market through a combination of export taxes and volume quotas, thus providing stability for the Canadian industry.

The US sawmilling industry, represented by the US Lumber Coalition, indicated it will initiate trade cases against imports from Canada now that the one-year litigation standstill period has passed. Preliminary countervailing duties for Canadian exporters could start as early as spring 2017.

Canadian and US negotiators continue to work towards an agreement. The US election in November and a generally protectionist climate contribute to the difficulty of reaching a new trade agreement.

Producers in British Columbia have worked on reducing their reliance on the US market by expanding exports to Asia, including India and Southeast Asia. Large Canadian companies have purchased sawmills in the US in the last decade to lessen the impact of potential duties on Canadian sawn softwood.

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