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- W291290358 abstract "The dispute over Canadian softwood lumber imports into the United States continued throughout 1993, spilling over into 1994. As in the 1992 Softwood Lumber disputes, the International Trade Commission (ITC) ruled that the U.S. softwood industry was being materially injured, following the U.S. Commerce Department's finding that Canada was subsidizing its softwood lumber industry. The Canadian parties immediately sought review by a binational dispute panel under the United States-Canada Free Trade Agreement (FTA). The dispute rebounded between the binational panel and the International Trade Commission, creating significant discord between the two. I. Sypnosis of the Situation Canadian/U.S. lumber disputes have erupted intermittently for more than thirty years. Major periods of dispute occurred during 1961-62 and 1981-83, as well as the 1986 and 1991-94 cases discussed here.(1) U.S. concern with the domestic softwood lumber industry began in 1981.(2) Canadian softwood lumber producers' steadily increasing share of the U.S. softwood lumber market finally led to a dispute between the two countries on June 5, 1986, when the U.S. lumber industry filed a complaint seeking the imposition of a countervailing duty (CVD) on Canadian lumber exports.(3) The industry claimed that Canadian stumpage fees, paid by timber producers to compensate the provinces for access to and harvest of provincial timber,(4) Were artificially low and constituted a subsidy that benefited Canadian lumber producers. The U.S. lumber industry asserted that subsidized imports of Canadian lumber caused material injury. In response, in 1986 the United States Trade Representative (USTR) instituted a investigation concerning Canadian softwood, and the Commerce Department and the ITC began preliminary investigations to determine whether or not the U.S. softwood industry was being materially injured, or threatened with material injury from Canadian imports.(5) The ITC found that Canadian softwood lumber imports accounted for an increasing percentage of the U.S. market: nineteen percent in 1975, twenty-seven percent in 1981, twenty-nine percent in 1983, and thirty-two percent in 1986.(6) On October 22, 1986, following the ITC's affirmative preliminary injury determination, the Commerce Department issued a preliminary determination that subsidies of fifteen percent ad valorem were being provided to Canadian producers of certain softwood lumber products.(7) Before final determinations were issued in the resulting CVD investigation, however, Canada and the United States entered into a Memorandum 8 of Understanding (MOU) on December 30, 1986, and tensions seemed to be quelled. Under the MOU, the government of Canada agreed to impose a fifteen percent export charge on softwood lumber products exported to the United States. The MOU provided that the charge could be reduced or eliminated with respect to imports from provinces that instituted qualifying replacement measures.(9) In return, the domestic industry withdrew its petition and the Commerce Department terminated its investigation.(10) Although the MOU had no expiration date, it did state that either country could terminate the agreement with thirty days' notification.(11) Canada announced its intention to terminate the MOU on September 3, 1991, effective October 4, 1991.(12) Canada cited three reasons for the termination. First, Canada claimed, the MOU had served its purpose;(13) since the memorandum was signed in 1986, many Canadian provinces had adopted policies that increased the costs of resources used by the lumber industry.(14) Canada's second reason for termination was its claim that the Canadian government had no subsidy program for Canadian lumber producers.(15) Finally, Canada stated that the Canadian share of the U.S. softwood market was decreasing.(16) Termination of the agreement caused a predictable uproar. …" @default.
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- W291290358 date "1994-03-22" @default.
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- W291290358 title "Recent Developments in the U.S./Canada Softwood Lumber Dispute" @default.
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