An overview of the softwood lumber dispute between Canada and the United States.
Written in 2009; 2,031 words; 7 sources; APA; $ 64.95
Paper Summary:
This paper examines how the softwood lumber dispute between Canada and the United States is an important trade dispute and how the disagreement between countries originated in the countervailing duty investigation by the US authorities in 1982/83. It looks at how The US countervailing duties on Canadian softwood lumber were based on the allegedly below-market fees charged by some Canadian provinces for stumpage rights granted to Canadian softwood lumber producers on Crown lands and how this marked the beginning of over two decades of allegations, investigations and imposed penalties by the United States.
From the Paper:
"The current lumber dispute between nations began in 1982, when lumber companies in the United States were faced with financial difficulties due to the recession. The US lumber industry petitioned the US government to impose tariffs against Canadian softwood lumber imports under the provisions of US countervailing duty law (Yin, 2004). The Coalition for Fair Lumber Imports (CFLI) filed a countervailing duty petition against softwood lumber from Canada, alleging that Canadian federal and provincial governments were subsidizing softwood lumber production by selling the right to cut timber on public lands at artificially low prices (Schwindt, 2004). The petition was taken to the US Department of Commerce and the US International Trade Commission (ITC) to determine if imported lumber from Canada was directly or indirectly subsidized by the Canadian government (Yin, 2004). In 1983, the International Trade Association (ITA) of the Department of Commerce concluded that the amount of subsidies was less than 0.5% and that Canadian stumpage programs did not amount to countervailable subsidies (Yin, 2004). "
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