Said1
Gold Member
Canada looks to retaliate against U.S. on softwood, B.C. backs move
Steve Mertl, Canadian Press
Wednesday, February 09, 2005
VANCOUVER (CP) -- The federal government will ask the World Trade Organization for authority to retaliate against at least $4.1 billion in U.S. imports over American non-compliance with WTO rulings on softwood lumber.
Government officials said Wednesday the Department of International Trade will apply Feb. 14 to the WTO to set up a compliance panel after the trade body ruled last year that Canadian lumber imports pose no threat of injury to American producers.
The request for authority to retaliate will be filed at the same time to preserve Canada's rights if the panel finds the United States hasn't abided by the WTO's ruling and rescinded punitive import duties levied on Canadian lumber.
The unprecedented dollar figure represents the total amount of countervailing and anti-dumping duties collected since the tariffs were imposed in May 2002 after the U.S. Commerce Department ruled Canadian lumber imports were being subsidized unfairly by provincial forestry policies.
"We're looking for authority to retaliate for the full amount of the duties that have been collected to date and for any future duties that will be collected with respect to softwood lumber," International Trade Minister Jim Peterson said in Ottawa.
Canada appealed the duties -- initially totalling about 27 per cent -- under WTO and North American Free Trade Agreement rules. Both WTO and NAFTA panels found Canadian lumber, which supplies about a third of the U.S. market, does not threaten American mills.
In a background briefing, officials said the retaliatory amount is the largest Ottawa has ever requested against the United States in a trade dispute. It could climb even higher because the compliance review and retaliation request will take several months to complete.
The officials said it's too early to say what U.S. imports might be targeted for retaliatory duties.
It could result in hitting a wide range of U.S. goods imported into Canada with hefty duties.
The U.S. International Trade Commission, an arm of the Commerce Department, issued a ruling last November modifying softwood duties in response to the WTO decision. But Canada has dismissed it as inadequate and based on the same flawed analysis the WTO rejected
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