Canadiar

EACTION in the industrl'to the temporary' countcrvailing duty' ol' l5 % irnposed on Canadian lurnber shippcd into the United States ranges t'rorn pleased to clcfinitcly unhappy to hoppint mad.

Announced on Oct. 16. thc final deadline fbr a preliminary decision. the ruling rcvcrscs an earlier decision nrade in 1983 that Canadian lumber \\as not subsidized. Months of studl bl'thc U.S. Conrmerce Dcpanrrrcnt irrcluding heal ing tr'stimony by both those in f'avor of the duty and thosc opposed to it preceded thc announccnrcnt of thc current dut)'. As a preliminary iudgnrent. it u ill be in cflbct for 45 days. During this time thc U.S. and Canadu u ill hare rn opporlunit) t() negotiate a settlcment on trade which could keep thc present 15 % duty, incrcase it. lessen it or eliminate it. Deadline for this action is Dcc. 30.

The Coalition fbr Fair Lumber lmprrrts. a group acti\€ in pronroting the belief that thc Canadian stuntpage policies are unfhir. would likc to havc seen an even higher dutf imposed. They have maintaincd that the provincial government policies of lowering stumpage fees u'hen prices fall represents a huge subsidy to the Canadian mills. As a result. they say. Canadian rnills have incrcased their share of thc U.S. rnarket to a third from less than a quafier f'cwer than l0 years ago.

Implcnrcntation of thc duty has caused confusion in the marketplace. All Canadian lumber coming into the U.S. now has to be acconrpanied by bonds or cash deposits equal kr the duty. Thesc will be held by the U.S. Customs Service until the f-inal ruling. At that time they will be returned or rctained. depending upon the flnal decision. The duty in most cascs is applied to the f.o.b. mill price of the shipnrent if it is seoaratclv identified on thc