US Postpones Final Determination of Softwood Lumber Import Duties

SEATTLE (Scrap Monster):  The US Department of Commerce (DOC) has deferred its final determination in the Antidumping Duty (AD)/ Countervailing Duty (CVD) investigations on softwood lumber imports from Canada. The date of final determination, earlier scheduled on Sept. 7, 2017, has now been postponed to no later than Nov. 14, 2017, said the announcement released yesterday by the Commerce Department.

According to the DOC announcement, the complexity of the investigations and the ongoing discussions between the US and Canadian governments on reaching a new agreement on the long-pending issue are cited as the key reasons behind postponement decision. Reacting to the decision, US Secretary of Commerce Wilbur Ross stated that the extension would give more room for resolving the contentious matters between the two parties. Further, he expressed hope that a durable and reasonable solution that satisfies the concerns of all parties involved may be evolved at the earliest.

The negotiations are on between both sides. New Brunswick Premier Brian Gallant has headed to Washington to meet top US officials to make the province’s case. He is expected to meet US Secretary of Commerce Wilbur Ross to request for exclusion of the province from softwood lumber duties. He is also expected to stress on how important it is for New England States to have a better trading relationship with the Atlantic Provinces. This would be Gallant’s second meeting with Ross in less than two months, sources said.

On the other hand, the dispute between the two countries has caused friction between the two sides with David MacNaughton, Canadian Ambassador to the US stating last week that the country is all prepared to sue the US in the event of failure of negotiations.

The Canadian lumber companies got temporary relief with the collection period of CVD coming to an end on August 27. Now the companies will have to pay only ADs as per June 23, 2017 announcement. Following a petition lodged by the industry coalition, the DOC had made some CVD retroactive to Jan 28, 2017. Also, some ADs were introduced retroactive to April 1, 2017. The Trump administration had imposed CVDs of up to 24% on Canadian imports in April. Additional duties of up to 7.7% were introduced in June.

Meanwhile, softwood lumber prices have surged higher significantly during the first half of the year, with North American lumber prices touching 13-year highs.