Canada rejects American trade panel ruling on lumber

<p>The Canadian government criticized a U.S. trade ruling Tuesday that found tariffs on Canadian lumber are justified and needed to keep the American lumber business competitive.</p><p>Softwood lumber imports from Canada are subsidized and sold in the United States at less than fair value, the United States International Trade Commission said.</p><p>Its the second time the ITC has ruled against the Canadian softwood lumber industry in a dispute over 27 percent duties imposed on Canadian imports in 2001.</p><p>Forestry is a $30.5 billion industry in Georgia, with 24.5 million of the states 37 million acres covered by trees. Timber is considered Georgias top crop.</p><p>In lumber production, Georgia ranks third behind Oregon and Washington and its also a leader in pulp-and-paper production.</p><p>Canada had previously protested the duties as unwarranted to the World Trade Organization and a NAFTA dispute settlement panel. In September, the NAFTA panel ruled the ITCs previous determination was unsubstantiated and based on speculation. The panel ordered the ITC to issue a new determination on threat of injury within 100 days.</p><p>Ottawa says the latest ITC ruling offers no new evidence.</p><p>The U.S. argument boils down to that since the fees have been in place, the U.S. industry has been doing better, Andre Lemay, a spokesman for Canadas Department of Foreign Affairs and International Trade said.</p><p>They dont substantiate it, Lemay said.</p><p>Canada could ask the NAFTA panel to rule again, or pursue the matter further at the World Trade Organization, but any action would be after consulting with provincial governments and industry, he said.</p><p>Canadas softwood lumber industry accounts for about one-third of the American market. Softwood lumber is mostly used for home construction and do-it-yourself projects.</p><p>Officials in Washington and Ottawa attempting to end the dispute have hammered out a tentative deal to scrap the duties, but the Canadian industry is divided on whether it gives away too much.</p>

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