On Sept. 26, the U.S. Commerce Department imposed preliminary anti-subsidy duties on the import of Canadian aircraft manufacturer Bombardier’s CSeries jets. This indication of the Trump Administration’s strong stance on unfair trade subsidies is a promising development for private forest owners.

The decision was the result of a formal complaint by Boeing, a U.S. aircraft manufacturer that claimed the Canadian aircraft were dumped below cost in the U.S. market while benefiting from unfair subsidies. The Commerce Department imposed a 219.63 percent countervailing duty on Bombardier, pending approval by the International Trade Commission (ITC).
 
“We are proud of the strong statement made by the Administration on unfair trade last week,” Forest Landowners Association (FLA) CEO Scott Jones said. “We hope that private forest landowners are given the same consideration as the International Trade Commission continues to evaluate duties on subsidized Canadian lumber.”
Immediately following the expiration of the 2006 Softwood Lumber Agreement, Canadian imports surged from 29.5 percent of total U.S. consumption in Q3:2015 to 33.1 percent in Q4:2015, and it continues to grow, according to the U.S. Lumber Coalition. This gain in market share comes at the direct expense of U.S. private forest owners.
ITC is expected to make its final determinations by mid-November on imposing countervailing duties upward of 20 percent on Canadian lumber. In the meantime, FLA will continue to educate elected officials and others on the importance of fair trade to the prosperity of private forest owners in the U.S.

 

Learn more about how FLA is advocating for fair trade on behalf of America’s private forest owners →