The final ruling was issued on Nov. 24. The U.S. Department of Commerce (USDOC) decision reduces tariff rates retrospectively for lumber exports from January 2018 to present, as well as rates applied to future exports.
“We will continue to defend Alberta foresters because we know that they operate fairly while maintaining the highest environmental standards. The U.S lumber tariffs are unfounded and hurt our industry in Canada and consumers in the United States.”
While Alberta welcomes the reduced tariffs, the ruling and assessment of any amount of duties unfairly targets Canadian softwood lumber exports.
“Alberta’s forestry sector plays a critical role in our economy, contributing billions to the provincial GDP in 2019, with more than $3 billion in exports. Tariffs impose additional costs to our industry, compromising the competitiveness and economic output of our mills. We want to protect the livelihood of hard-working Albertans across our province.”
“Alberta’s engagement with our friends and neighbours in the U.S. will always include advocating against tariffs on softwood lumber. At a time when North American families are already experiencing significant economic challenges, these tariffs ultimately increase costs for U.S. consumers looking to build new homes.”
- Every year, following the anniversary of initial final duty determinations by the USDOC, an administrative review may be conducted to ensure that the assessed duties reflect the most current information. The review announced Nov. 24 examined exports made between April 2017 and December 2018.
- The Canadian federal and provincial governments and selected companies provide updated information by responding to USDOC-issued questionnaires.
- The outcome of an administrative review may result in an increase or decrease in the actual duties owed, or a finding that no duties are owed on exports made during the review period.
- The USDOC selected two companies operating in Alberta, West Fraser and Canfor, as mandatory respondents for both the anti-dumping (AD) and countervailing (CVD) duty administrative reviews. Two eastern Canadian companies, Resolute Forest Products and JD Irving Ltd., were also selected.
- On Nov. 24, the USDOC announced the following combined CVD and AD final tariff rates for the first administrative review:
- Canfor: 4.93 per cent (2017), 4.62 per cent (2018)
- West Fraser: 8.16 per cent (2017), 8.97 per cent (2018)
- Resolute: 19.86 per cent (2017), 20.25 per cent (2018)
- JD Irving: 5 per cent (2017), 4.23 per cent (2018)
- All other companies subject to the first administrative review: 8.83 per cent (2017), 8.99 per cent (2018)
- Alberta companies that export to the U.S. and were not covered under the first administrative review will continue to receive the initial investigation all others rate of 20.23 per cent.