Tuesday 1 February 2022

U.S. proposing lower duties for New Brunswick lumber producers

https://www.cbc.ca/news/canada/new-brunswick/lower-softwood-lumber-duties-nb-1.6335452

 

U.S. proposing lower duties for New Brunswick lumber producers

Province's lumber mills would see average rate about 6 percentage points lower when rates set in the fall

Just two months after confirming increases in the duties, the U.S. Commerce Department's preliminary assessment is now proposing lower amounts that would take effect later this year.

Most mills in New Brunswick will see their combined anti-dumping and countervailing duty rates drop from 17.9 per cent to 11.64 per cent.

J.D. Irving Ltd.'s rate will drop from 15 per cent to 7.09 per cent.

The average drop in duties for New Brunswick producers would be around six percentage points. (NICOLAS STEINBACH/RADIO-CANADA)

J.D. Irving's wood is charged a different rate than other producers because it successfully persuaded the U.S. Commerce Department to investigate it separately from the rest of the industry.

The U.S. first included New Brunswick mills in its softwood lumber duties in 2017 after concluding that prices on provincial wood were not based on an open market.

The growing role of government-owned Crown land in the wood supply distorted the price paid for private wood, the U.S. found. 

That finding remains the official U.S. position and was set out again in the assessment published this week. 

"We find that oligopsonistic conditions exist in New Brunswick that contribute to the distortion of the market for private origin standing timber in the province," it says.

An "oligopsony" is a market where a small number of large buyers can influence the price paid for a commodity. 

American lumber producers have long complained that Canadian wood is unfairly subsidized by governments, making it less expensive to U.S. buyers.

U.S. proposal repeats that country's belief that New Brunswick doesn't have a market-based pricing system. (Shane Fowler/CBC)

Duties charged to American customers are designed to raise the cost of Canadian wood and render the U.S. product more competitive.

Under U.S. law, the duties are reviewed annually, with a preliminary assessment early in the year and a final decision in the fall. The proposed lower duties published this week won't be finalized until September. 

The rates finalized last November were based on 2019 market data, while the preliminary assessment issued this week for the coming year was based on 2020 numbers.

Last fall, the Canadian government announced it was filing a formal challenge of the duties under the Canada-U.S.-Mexico free trade agreement.

 

CBC's Journalistic Standards and Practices

 

 

24 Comments
Commenting is now closed for this story.

 
 
 
Marcel Belanger
This whole thing is a farce, the Irving lobbyist is our premier and our woodlands are being given away.  
 
 
 
 
 
 
 
 
 
Marguerite Deschamps
We're not out of the
🌲🎋🌲🌲🌳🌲🎋🌲🌳🌲🌳🌲🎋🌲🌲🌲🎋🌳🌲🌲🎋🌳🌲🌳🌲🎋🌲🌲🎋🎋🌲🎋🌳🌲🌲🌳🌲🌳🌲yet❗
 
 
David Amos
Reply to @Marguerite Deschamps: C'est Vrai
 
 
 
 
 
 
 
 
 
 
Jos Allaire
We all know who's running the show here!
 
 
David Amos
Reply to @Jos Allaire: Biden
 
 
 
 
 
 
 
 
 
 
 
phil mckay
Who cares. Wont help NBers. Just corporations.
 
 
David Amos
Reply to @phil mckay: True
 
 
 
 
 
 
 
 
 
 
 
Johnny Jakobs
"I want to hear the trees scream", thats why I'm with JDI.
 
 
David Amos
Reply to @Johnny Jakobs: Surely you jest
 
 
Johnny Jakobs
Reply to @David Amos: It's a caption in The Mannatee from a few years back
 
 
Johnny Jakobs
Reply to @Johnny Jakobs: "My Grandad worked for JDI, my Dad works for JDI, thats why I work for JDI"
 
 
David Amos
Reply to @Johnny Jakobs: FYI The Mannatee minions tried to have me arrested but I got the last laugh recently 
 
 
Jos Allaire
Reply to @Johnny Jakobs: Just like that Trump supporter from Kentucky: "My Grandad worked in a coal mine, my Dad works in a coal mine, I work f in a coal mine and Hillary wants to shut down the coal mines". 
 
 
 
 
 
 
 
 
 
 
 
Robert G. Holmes
Desperate under-supplied Builders in US speak and are heard.
 
 
David Amos
Reply to @Robert G. Holmes: Kinda Sorta
 
 
 
 
 
 
 
 
 
 
June Arnott
Irving always out for itself!
 
 
John Dale
Reply to @June Arnott: The Irving’s are not your enemy. Take a second look please on who you need to hold to account.
 
 
Neil Murphy
Content deactivated
Reply to @John Dale: Someone that uses and abuses people to Monopolize their wealth, I wouldn't call my friend.
 
 
David Amos
Content deactivated 
Reply to @John Dale: Anyone with half a clue knows this was Yankee doings
 
 
Neil Murphy
Reply to @John Dale: Someone that uses and abuses people to Monopolize their wealth, I wouldn't call my friend.  
 
 
David Amos
Reply to @Neil Murphy: Anyone with half a clue knows this is Yankee doings 
 
 
David Webb NB
Reply to @Neil Murphy: How have you been used and abused? It may help us to understand your Irving hatred. 
 
 
David Webb NB 
Reply to @June Arnott: I tend to think it is more the governments of the last 50 or so years that may be the problem. As with any corporation, who do you think they should be out for? Who makes the rules?
 
 
Jos Allaire
Reply to @David Amos: Yankee doing, but the baron got preferential treatment.
 
 
 
 
 
 
 
 
 
Michael Collins 
Looks like the right palms got greased again.
 
 
David Amos
Reply to @Michael Collins: However they were not greased enough

 

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