Saskatchewan Province Welcomes U.S. Cut on Lumber Export Duty

SEATTLE (Scrap Monster): The Saskatchewan provincial government welcomed U.S. decision to reduce duties of Canadian softwood lumber exports. It noted that the reduction of duties from 20.2% to 8.9%, as part of annual review of duty rates, will lead to savings of several million dollars to forestry companies. However, the government noted that it will works towards achieving further reduction of duties.

In a news release, Jeremy Harrison, Minister of Trade and Export Development said that the reduction in duties is a step in the right direction for advancing free trade for softwood exports. However, the duties continue to be unfair and unjustified, he added. It must be noted that forest product sales in the province had totalled around $946 million during the previous year.

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Meantime, the industry group New Brunswick Lumber Producers stated that the present decision by the U.S. decision is still not enough. It called for reinstating of the historic Maritime Provinces exemption from U.S. lumber duties. The exemption of the New Brunswick industry is justified by its fair and free-market stumpage system. The group noted that a negotiated settlement between the U.S. and Canadian government would be the appropriate solution for the long-pending trade war.