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FLA Applauds Commerce Department’s Preliminary Determination in Softwood Lumber Investigation
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On Monday, June 26th the Commerce Department announced a preliminary determination that exporters from Canada have sold softwood lumber into the United States at a 4.59 – 7.72 percent discount from fair value “based on factual evidence provided by the interested parties.” Further, U.S. Customs and Border Protection will now be instructed to collect cash deposits from importers of those products from Canada based on those initial findings. These rates are in addition to the countervailing duties imposed on April 24, 2017 and together the new duty rates can range from 17.4 to 30.1%.

“The United States is committed to free and fair trade, as seen today with the preliminary decision to exclude softwood lumber from the Canadian Atlantic Provinces in the ongoing antidumping and countervailing duty cases,” said Secretary Ross. “While I remain optimistic that we will be able to reach a negotiated solution on softwood lumber, until we do we will continue to vigorously apply the AD and CVD laws to stand up for American companies and their workers.”

The Forest Landowner’s Association (FLA) applauds the announcement and commends the Commerce Department for its work. “The FLA supports Commerce’s investigation and findings in this case,” said FLA CEO Scott Jones. “The illegal dumping of provincial lumber into the U.S. suppresses markets and prices for wood grown and cared for by private forest landowners across this country.  Without Commerce’s determination to enforce fair trade the impact on private forest landowners’ future could have been devastating.  We are proud the U.S. government is willing to take the necessary steps to ensure free and fair trade because without their determination, it is very possible that we, as forest landowners, will suddenly find ourselves being overrun by subsidized Canadian lumber at prices with which we cannot compete.”

The Department of Commerce will announce its final determinations on September 7, 2017. A separate investigation is being performed in parallel with the Department of Commerce’s by the U.S. International Trade Commissions. If both investigations result in affirmative determinations, an antidumping order will be issued and duties will be collected. If the ITC does not find that U.S. producers were harmed, the investigation will end and no duties will be collected.

In 2016, imports of softwood lumber from Canada were valued at an estimated $5.66 billion.

 

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