Canadian Lumber Trade Essay Example | Topics and Well Written Essays - 1000 words

Canadian Lumber backing - Essay ExampleSeveral meetings were held amidst the Trade officials of both the countries in order to get to a mutual understanding, which would benefit both the parties, exclusively until today both the parties be seeking for solution for this issue.By May 2002, US International Trade Commission took a stand against Canadian Lumber Producers by stating that the imports from Canada threaten material injury to US industry. The Commission was convinced that Canadian softwood log imports are unfairly subsidized. During the same year, Bush politics slapped average tariffs of 29 percent on Canadian softwood lumber imports in a wish well to protect US lumber jobs from subsidized Canadian imports. check to Mary Crawford1, the tariffs, k instantaneouslyn as countervailing duties get out be 19.34 percent and the additional dumping penalty of 9.6 percent leave alone be applied to Canadian lumber exporters for selling their softwood lumber at prices below fair market value.The imposition of the tariffs everywhere the Canadian softwood lumber definitely was going to protect the US lumber industry in the longer run, but the most effected ones were the US consumers, as they were going to face the hike in prices of lumber, hence overall construction live would be high. The NAHB2 believed that the tariff would serve as a enigmatical tax on US homebuyers and renters. According to NAHB, the overall 29 percent tariff was adding $1000 to the cost of building a new home. NAHB pointed out different types of lumber for house framing is not interchangeable, and the types of lumber being imported from Canada are different from US lumber, and are used in different geomorphological uses in home construction, hence the tariff is going to affect the overall quality of a house. According to Barry Rutenberg3, for house framing the Canadian SPF4 is better than US SPF, and satisfies the requirement. He said, Homebuilding and remodeling account for two-thi rds of lumber consumption in the U.S., and lumber is the primary building material used in home building. Because there are not enough trees available in the U.S. to produce the lumber needed for home building, Canadian lumber imports are critical for the construction of affordable new homes and to make improvements on existing homes in America. As the price of Canadian SPF raises the overall house construction prices also rises, which will decrease the number of homebuyers. of late US Department of Commerce published a second administrative review in the federal official Register, according to which, for softwood lumber shipped from Canada to the U.S., the combined countervailing and anti-dumping duty rate of 10.8 percent is now in effect. The countervailing duties will be collected at a rate of 8.7 percent, and the all-other anti-dumping rate is now 2.1 percent.The real question now is whether the Canadian government is going to tackle the apportion dispute issue in a itinerary which enable the Canadian lumber industry to regain the power it needs to shape the economy in the interests of Canadian citizens, the majority of which are women and men who work for wages.Analysis shows that there are certain come across points which are going against the Canadian lumber industry interests and overall Canadian labour community. Firstly, the U.S. still manages trade in their own interests whenever they want to do so.