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  NEWS RELEASE 

For Immediate Release

2004FOR0082-001077

Dec. 14, 2004

Ministry of Forests

 

B.C. CONDEMNS U.S. TRADE ACTION

 


PRINCE GEORGE – Forests Minister Michael de Jong expressed frustration at the U.S. Department of Commerce’s minimal rate reduction on softwood tariffs from 27.22 per cent to 21.21 per cent.

 

“This looks like a rate in search of a methodology – this is the fourth methodology since the duties were first imposed,” said de Jong.  “Despite the fact that the U.S. Department of Commerce has reduced the rate, they continue to manipulate the results.

 

“Time and again, international tribunals have found that the U.S. imposition of softwood lumber tariffs is against the rule of law. We will not give up the fight until the softwood duties are eliminated altogether and money refunded.”

 

            As a result of its “administrative review” of data from May 22, 2002 – March 31, 2003, the U.S. Department of Commerce has determined that the countervailing duty rate on softwood lumber products from Canada should be 17.18 per cent. The anti-dumping duty rate dropped to 4.03 per cent, for a total of 21.21 per cent. In June, the Department of Commerce issued a preliminary determination of 13.22 per cent.

 

            The new rate will take effect within the next two weeks – after it is published in the U.S. federal register.

 

            “Whether through litigation or negotiation – our goal of a long-term durable resolution to the softwood lumber dispute remains,” said de Jong. “We’ve been able to weather the storm by strengthening the forest economy through our Forestry Revitalization Plan. I’m confident that the duties will be eliminated by the final NAFTA ruling expected in March.”

 

            In November, the U.S. filed an extraordinary challenge of the NAFTA finding of “no threat of injury.” If this finding is upheld on the final appeal, then the softwood duties will be eliminated.

 

“The softwood lumber dispute has taught us not to put all our eggs in one trade basket, that’s why we’re actively working to expand developing markets in Asia,” added de Jong.

 

In January, de Jong is leading a trade delegation to China and Japan and will participate in the grand opening of phase one of the $12 million Dream Home China project.

 


For more information on the softwood lumber dispute, the Forestry Revitalization Plan and other ministry initiatives, visit http://www.gov.bc.ca/for/ online.

 

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 1 backgrounder(s) attached.

 

 

Media

contact:

Don McDonald

Communications Director

Ministry of Forests

250 387-8486

 

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