By Madison's Lumber Reporter
As the softwood lumber dispute V file winds its way through the usual U.S. domestic as well as international trade court tribunals, a preliminary ruling Monday from the U.S. commerce department brings a sharp reduction in the duty rates paid on Canadian softwood lumber entering the U.S. All companies named, as well as the group “all others” category – except Resolute Forest Products – will likely be paying much less on their wood sold into the U.S. come August 2020.
The commerce department will be releasing reasons for this ruling “within a few days”. In August will be the final ruling, and soon after the new, lower, duties will take effect.
Do the Canadian companies receive back the amount over this preliminary ruling they have paid so far, since the duty was put in place? Good question, that is just one of the many entanglements of a complicated trade file like softwood lumber. The other, something new, currently afoot is that the international tribunal for softwood lumber at the World Trade Organization (WTO) is stymied since December 2019 due to refusal by the U.S. to appoint new arbitrator judges. Another working softwood lumber retired, leaving only three judges on that panel. It’s supposed to be a minimum of five.
This arbitration was quite close to nearing conclusion in Q3 2019; that’s one of the reasons it was allowed to go on with only four judges. At last update, it is unknown if the WTO will be continuing with the ongoing Canada-U.S. softwood lumber arbitration in international trade court.
In week ending January 31, 2020, benchmark North American construction framing lumber item Western Spruce-Pine-Fir KD 2×4 #2&Btr (RL) prices popped up by +$6, or +1.5%, compared to the previous week, to US$408 mfbm. This week’s price is +$10, or +2.5%, more than it was one month ago. At this time last year this price was falling, so is now only up by +$4, or +1% compared to the end of January 2019, a significant drop from recent trend.
As the softwood lumber dispute V file winds its way through the usual U.S. domestic as well as international trade court tribunals, a preliminary ruling Monday from the U.S. commerce department brings a sharp reduction in the duty rates paid on Canadian softwood lumber entering the U.S. All companies named, as well as the group “all others” category – except Resolute Forest Products – will likely be paying much less on their wood sold into the U.S. come August 2020.
The commerce department will be releasing reasons for this ruling “within a few days”. In August will be the final ruling, and soon after the new, lower, duties will take effect.
Do the Canadian companies receive back the amount over this preliminary ruling they have paid so far, since the duty was put in place? Good question, that is just one of the many entanglements of a complicated trade file like softwood lumber. The other, something new, currently afoot is that the international tribunal for softwood lumber at the World Trade Organization (WTO) is stymied since December 2019 due to refusal by the U.S. to appoint new arbitrator judges. Another working softwood lumber retired, leaving only three judges on that panel. It’s supposed to be a minimum of five.
This arbitration was quite close to nearing conclusion in Q3 2019; that’s one of the reasons it was allowed to go on with only four judges. At last update, it is unknown if the WTO will be continuing with the ongoing Canada-U.S. softwood lumber arbitration in international trade court.
In week ending January 31, 2020, benchmark North American construction framing lumber item Western Spruce-Pine-Fir KD 2×4 #2&Btr (RL) prices popped up by +$6, or +1.5%, compared to the previous week, to US$408 mfbm. This week’s price is +$10, or +2.5%, more than it was one month ago. At this time last year this price was falling, so is now only up by +$4, or +1% compared to the end of January 2019, a significant drop from recent trend.
