The US administration has unveiled conditions for ending its duties on softwood lumber imports from Canada.
It has called for a temporary tax of at least 13% to replace the punishing 27% duties currently in place, while Canadian provinces change over to a more market-based timber system.
US under-secretary of commerce Grant Aldonas said the American proposals, called “policy bulletins”, were intended to meet Canada “halfway” in the dispute.
America wants a 13% tax on the first 16 billion board feet of timber imported from Canada. Higher duties of up to US$175 per thousand board feet would apply when Canadian imports go above 29.7% of the US market.
British Columbia, Ontario and Alberta would have to follow US rules on opening up provincially-controlled timber to auctions.
Conditions also include Canada having to drop minimum cut requirements which encourage harvesting even when market conditions dictate otherwise and drop policies which force mills to produce timber when the market is poor.
Weyerhaeuser has thrown its support behind the plans and says it represents a way of ending the long-running dispute.
Steven Rogel, the company’s chairman, president and chief executive, said: “It’s imperative that the US and Canadian governments complete their negotiations. All stakeholders must be prepared to give up extreme positions in search of a compromise.”
The latest US proposals follow shortly after the World Trade Organisation‘s final ruling on America’s countervailing duties. The ruling was not made public but both countries have claimed victory.
