Representatives of the US and Canada were locked in new talks this week in an effort to resolve the protracted softwood lumber dispute.
Hopeful signs are reported, with one US source saying a deal may be struck as early as this week. The US government is considering suspending duties while the negotiations continue as a gesture of good faith.
Negotiators are trying to reach a deal before the US Commerce Department makes its ruling on permanent countervailing duties for Canadian lumber on March 21.
However, the Coalition for Fair Lumber Imports, which is lobbying for the US lumber industry, is calling for countervailing duties to be hiked from the preliminary 19.3% to a massive 51%.
The group claims the US government has not adequately valued British Columbian cedar and old-growth lumber.
Negotiations include Canada imposing an ‘export’ tax on its timber of between 19-24% plus a minimum price for construction timber.
British Columbia has also proposed a market-based pricing system for timber by auctioning 13% of Crown timber in future. But the Coalition for Fair Lumber Imports wants this figure to be at least 66%.
