Canada Considers Retaliatory Trade Actions Against the Latest US Softwood Lumber Duties


The Canadian government has found several Oregon business-assistance programs it says may constitute illegal subsidies. It is considering a process that could lead to retaliatory duties on imports from that state’s products, such as plywood, flooring, wood chips, packaging material and wine, according to several mainstream news sources mid-day Friday.

Prime Minister Justin Trudeau will launch the first salvo in a letter to BC Premier Christy Clark, informing her that he’s seriously considering her request for a ban on thermal coal exports and that it’s being explored by federal trade officials.

Two government sources say a long-term deal on softwood lumber would be the best way to prevent the dispute from escalating.

Canada’s government says it has zeroed in on nine programs in Oregon that assist businesses, primarily in lumber.

They include: the Oregon Underproductive Forestland Tax Credit, the Oregon Forest Resource Trust, the Oregon Tree Farm Program, the Pacific Forest Trust, property tax exemptions for standing timber, a small winery tax exemption program and other tax credits.