Marcia Love

Whitecourt Star

Both federal and provincial government officials say they will continue to stand up for the lumber industry and fight protectionist trade measures following the United States Department of Commerce’s announcement on softwood lumber duties earlier this month.

While the cost won’t be as high as initially expected earlier this year, softwood lumber producers, as well as the federal and provincial governments, aren’t pleased with the tariffs being imposed on sending their products south of the border.

"Personally, I’m angry and frustrated that the Americans have yet again taken this tact. This is the fifth time that we’re going to argue the Softwood Lumber Agreement," said Oneil Carlier, Alberta Agriculture and Forestry Minister and Whitecourt-Ste. Anne MLA. "We’re going to win in the long run, but we’re going to have to put up a fight and we will."

Deron Bilous, Alberta Economic Development and Trade Minister, stated he was confident that this dispute would be ruled in Canada’s favour but that the forestry industry would be "in for a rough ride" until then.

"We’re beyond frustrated at the U.S. The Government of Canada was very close to signing an agreement with the U.S. In fact, it was coming down to literally a pen about to hit paper and then it went off the rails," Bilous said.

Canadian companies exporting softwood lumber to the United States will pay combined duties of just over 20 per cent, the United States Department of Commerce announced Nov. 2. In its final determination, the U.S. stated the majority of Canadian producers will pay a combined rate of 20.83 per cent, with West Fraser Timber paying the highest at 23.76 per cent. This was down from the 26.75 per cent originally announced this summer.

But the provincial and federal governments, along with the Alberta Softwood Lumber Trade Council, say the taxes will hurt both countries.

“Canadians and Americans need to understand that the duties announced are unfair and harmful to jobs on both sides of the border,” said Paul Whittaker, co-chair of the Alberta Softwood Lumber Trade Council. “Ironically, these punitive duties may end up hurting U.S. consumers and workers the most by artificially restricting the supply of lumber, raising prices, and pricing many Americans out of home ownership. The largest benefactor of this decision will be producers from other countries, including Russia, Germany, and Sweden who will benefit from artificially higher prices and being exempt from any duties.”

According to the U.S. department, Canadian exporters have sold softwood lumber to the U.S. at 3.2 to 8.89 per cent less than fair value. The increased duties are part of countervailing and anti-dumping measures.

Brock Mulligan, a spokesperson for the Alberta Forest Products Association and Softwood Lumber Trade Council, said the Canadian government made a strong effort to negotiate on behalf of the industry throughout the process.

“Ultimately, a settlement that was in the interests of producers in Alberta and Canada didn’t seem to be on the table, and therefore we’re supportive of the litigation steps that are likely going to be taking place in the near future,” he said.

In a statement, Jason Brochu, U.S. Lumber Coalition co-chair and co-president of Pleasant River Lumber Company, said the anti-dumping and countervailing duties are “a purposeful and normal U.S. government action.”

“Canadian subsidies are an abuse of U.S. law and WTO commitments, putting U.S. lumber mills at a significant competitive disadvantage,” he said. “In this environment, U.S. mills struggle to maintain production and employment levels even though we have the capacity and desire to grow and add more jobs. We believe in the quality and efficiency of the U.S. industry, and welcome fair competition from our northern friends. U.S. producers simply want to compete on a level-playing field. Nothing more.”

-With files from Peter Shokeir