Softwood Lumber Agreement 2006

(b) effective management of customs aspects of ALS 2006, including export authorizations, quantitative restrictions, data collection and information exchange; tariffs were applied separately following the expiry of the Canada-U.S. conifer antler agreement, which governed exports from April 1, 1996 to March 31, 2001. As part of the agreement, the United States guaranteed Canadian exporters market access for five years and authorized the importation of 14.7 billion board feet per year at no cost. The agreement applied to $10 billion worth of wood $US produced in British Columbia, Alberta, Ontario and Quebec. The second phase, Lumber II, began in 1986, when an American timber industry group, the U.S. Coalition for Fair Lumber Imports, launched a petition to the Department of Commerce. [11] The USITC again concluded that Canadian exports have unfairly influenced U.S. producers. This time, the DoC found Canada`s forest programs questionable and imposed a 15% interim obligation. Prior to the imposition of the subsidy, the United States and Canada approved a declaration of intent introducing a progressive tariff. One of the conditions of the agreement was that Canada levy an export tax on timber going to the United States. The provinces concerned had the opportunity to reduce this tax when they took steps to offset their subsidies. British Columbia abolished the tax in 1987, while Quebec partially cancelled it in 1988.

[11] 3 For the purposes of Article IX, each quarter, which is included in 2 “consecutive quarters,” is comparable only to the same quarter of the previous year. For example, the second quarter of 2007 would be compared to the second quarter of 2006 and the first quarter of 2007 with the first quarter of 2006, to determine whether the conditions set out in paragraph 1 are met. On August 22, 2006, Mr. Harper announced that his government would introduce legislation in september in the House of Commons to implement the agreement, saying that the major conifer-timber-producing provinces and a “clear majority” of Canadian forestry companies had supported it. The agreement is based on the April 26 framework agreement. Emerson says he will pass an agreement in September 2006 to confirm the agreement and hopes it will enter into force by October 1, 2006. (4) Canada has an immediate and unconditional right to terminate ALS 2006 if the United States does not comply with its obligations under Section V. (3) The United States has an immediate and unconditional right to terminate ALS in 2006 if Canada does not implement export measures. In April 2006, the United States and Canada announced that they had reached an interim agreement to end the dispute. The announced Softwood Lumber Agreement (SLA) came into full force in October 2006.

The terms stipulated that the period of this agreement would last between seven and nine years. The two countries agreed to a two-year extension in 2012. [7] Under the interim conditions, the United States would lift countervailing and anti-dumping duties if timber prices remain above a specified range. A mixed system of export taxes and quotas on Canadian timber imports would be introduced below the specified range. On the Canadian side, the nation has agreed to enforce the rules, for example in the form of taxes on timber exports to the United States. In particular, Canadian provincial governments have been encouraged to change their pricing systems.

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