U.S. Attempts Last Ditch Appeal In Softwood Lumber Dispute
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Today the U.S. government regrettably prolonged the softwood lumber dispute by formally requesting that a NAFTA “extraordinary challenge committee” (ECC) review the NAFTA panel decision on
threat of injury. The panel, including three Americans and two Canadians, have
unanimously agreed there was no evidence to support the U.S. International
Trade Commission’s (ITC) determination that Canadian imports threaten injury
to the U.S. lumber industry.
The U.S. request for an ECC will only extend the legal case and delay for
several months the inevitable victory Canada has achieved fairly through the
NAFTA process.
The Canadian Lumber Trade Alliance (CLTA) believes the U.S. government is
caving into pressure by approximately 50% of U.S. lumber producers,
represented by the U.S. Coalition for Fair Lumber Imports, in a last ditch
attempt to have an ECC reverse the panel’s decision. This is the same strategy
that the U.S. used in the last softwood lumber dispute in 1994, but to no
avail. The ECC failed, and the U.S. was forced to revoke the illegal
countervailing duty order, which led to the refund of all the Canadian
producers’ duties.
The U.S. simply refuses to admit it was wrong to impose the 27% duties on
softwood lumber imports, which now have been proven illegal not only by the
NAFTA panel, but by a separate WTO panel as well. Instead of accepting its
mistake and revoking the illegal duties, the U.S. seems intent on finding a
scapegoat, and the NAFTA panel is a convenient target. The CLTA will not be
intimidated by the filing of a frivolous ECC and is disappointed the U.S. has
shown such little respect for the NAFTA institutions, which were formed to
improve trade relations between Canada and the U.S., not create a lengthy
legal process with no resolution.
The CLTA will work closely with the Government of Canada to vigorously
defend Canada’s softwood lumber producers through the ECC process and is
confident Canada will emerge victorious once again. No panel decision has ever
been overturned by an ECC.
The Canadian Lumber Trade Alliance worked together to present a joint
submission to the NAFTA panel. The Canadian Lumber Trade Alliance includes:
The BC Lumber Trade Council, Alberta Softwood Lumber Trade Council, the
Ontario Forest Industries Association, the Ontario Lumber Manufacturers
Association, Free Trade Lumber Council, and the Québec Forest Industry
Council.
@ November 24, 2004