US-Canada: Washington Open to New Canadian Tariff Negotiations

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The United States is open to new talks with Canada to resolve a long-running dispute over US tariffs on coniferous timber, the US Trade Representative, Kathryn Thai, said on Wednesday.

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Tai told a Senate Compensation Subcommittee meeting that a new timber trade agreement requires the Canadian government to address US concerns that its policies are based on subsidies to Canadian producers.

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“Whenever Canadian industry and the Canadian government are ready to resolve these issues, we are ready and willing to enter into negotiations to see if we can once again reach some kind of agreement with Canada,” he said. Tai.

U.S. home builders are facing rising prices from inflation for both timber and other materials they use, and have protested to the Biden government to lift tariffs on subsidies and protectionism for their timber. coniferous trees and range from 6.75% to 20.24% depending on the producer.

“Canada is at the negotiating table from the beginning. We are delighted to hear that the United States is ready to meet with us there,” said Alice Hansen, spokeswoman for Canada’s Minister of International Trade Mary Angie.

US Treasury Secretary Janet Glenn said on Tuesday that President Biden was not considering withdrawing tariffs on timber from Canada as part of efforts to reduce inflation.

Tariffs on Canadian coniferous timber imports are at the heart of a long-running dispute with the United States over the structure of the sector in Canada, and problems have not been resolved since a 2015 quota deal expired.

The United States has argued that federal and local timber provided by the Canadian government for a small price is an unfair subsidy practice, as most timber in the United States is collected from private lands at market prices.

“I talk about timber almost every time I see my Canadian counterpart,” Tai told the hearing, referring to Angie.

Hinting that the dispute with Canada over the issue is a major obstacle, Tai said that any decision would depend on Canada’s desire to regulate “an unequal field (of competition) for our industry, given how manage their timber sector, which is impacted by subsidies to their American competitors. ”


Source: Capital

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