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WTO backs U.S. on lumber imports
WASHINGTON (AP) - The World Trade Organization has upheld steep antidumping tariffs that the United States has imposed on softwood lumber imports from Canada, a U.S. trade official said Jan. 15.
The decision by a World Trade Organization dispute panel was received late Jan. 15 by the U.S. government, said the official, who spoke on condition of anonymity because the decision has not yet been made public.
"It's a big win for us. We are pleased the panel found that we enforced our trade laws in a WTO consistent manner," said the official.
The WTO ruled that the United States did not violate any global trade rules when it imposed penalty tariffs on Canadian softwood lumber after a finding by the U.S. government that the lumber was being sold in the United States at prices below the cost of production, a practice known as dumping.
The ruling, which will be made public by the WTO after both sides have had time to review it, can be appealed by the Canadian government.
The win on the antidumping tariffs is one of a number of interim decisions that WTO dispute panels have handed down in recent months in the bitter lumber fight. The United States lost a WTO decision on a separate issue of damage to the American lumber industry in December and is deciding whether to appeal that case.
The United States and Canada have been searching for a way to end the bitter trade dispute.
Jan. 12, Canada turned down an American proposal that would have ended the steep U.S. tariffs in exchange for a quota system limiting Canada's access to the U.S. market.
Canadian Trade Minister Jim Peterson told reporters after meeting with U.S. Trade Representative Robert Zoellick that Canada had turned down the offer because the country's provincial governments were opposed to the deal.
The United States imposed stiff duties on softwood lumber imports from Canada in May 2002 after accusing the Canadian government of subsidizing its lumber industry. Softwood lumber, from pine, spruce and other trees, is a key product in home construction.
In 2002, the United States imported nearly $6 billion of softwood lumber from Canada, about a third of the American market.
In December, the U.S. Commerce Department had proposed giving Canadian lumber duty-free access to 31.5 percent of the U.S. softwood market with stiff tariffs to be imposed on lumber imports above that level.
Peterson said in middle January that Canadian officials still hope to reach a settlement with the Bush administration to resolve the lumber dispute.
Date: 2/3/04
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