Panel Upholds Levies on Canadian Lumber
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An international trade panel rejected Canada’s claim that the United States had no basis to impose tariffs on softwood lumber used to build homes but said the duties might be too high.
The panel of three American and two Canadian judges, set up under the North American Free Trade Agreement to deal with trade disputes, upheld U.S. claims that Canada subsidizes its timber industry and therefore is subject to tariffs.
The legally binding ruling means the Commerce Department must recalculate -- and probably reduce -- the tariffs within 60 days.
The decision also could put pressure on Canada to reform its timber industry and move toward a more market-based system.
From Associated Press
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