The Globe and Mail reports in its Saturday, April 5, edition that the U.S. Department of Commerce is proposing to more than double duty rates on most Canadian softwood lumber producers, increasing them from 14.4 per cent to 34.45 per cent. The Globe's Brent Jang writes that this decision follows a review and reflects a nearly 140-per-cent hike in combined duties due to both countervailing and anti-dumping measures. The final duty rates will be confirmed later, with an effective date expected in late summer or early fall. The dispute over softwood lumber, intensified under the Trump administration, involves U.S. claims of Canadian producers selling below market value and receiving subsidies. Under the proposed new schedule for duty rates, Vancouver-based Canfor will see its total levies soar to 46.48 per cent, up from the current 16.58 per cent. Canfor's higher combined levy consists of 11.87 per cent for countervailing and 34.61 per cent for anti-dumping.
Vancouver-based West Fraser Timber will pay a rate totalling 26.05 per cent, compared with the existing 11.89 per cent. West Fraser's higher combined levy consists of 16.57 per cent for countervailing and 9.48 per cent for anti-dumping.
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