B.C. government feel it can prove it doesn't subsidize lumber exported to the U.S. (Image Credit: CFJC Today)

By Chad Klassen

SOFTWOOD LUMBER DISPUTE

B.C. Forest Minister confident appeal process on recent WTO ruling will be successful

May 6, 2019 | 3:22 PM

KAMLOOPS — The B.C. Forest Minister says the province is pushing back against a World Trade Organization ruling last month in favour of the American government using a long-outlawed practice of ‘zeroing’ to calculate anti-dumping tariffs, which affects about more than $5.5 billion worth of Canadian exports.

The provincial and federal governments have appealed the ruling, and Forest Minister Doug Donaldson, speaking in Kamloops on Friday, said he is confident both parties can prove they don’t financially aid forestry companies in the sale of lumber to the U.S.

“We use those appeal processes. We’ve won in the past. B.C. timber sales is an important part of that process because they provide the data points for our market price system to demonstrate that there are no subsidies when it comes to log prices in B.C.,” noted Donaldson.

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He adds the recent temporary shutdown of Canfor mills across the province were caused by a multitude of factors, including issues with the ongoing softwood lumber dispute.

“That’s a combination of factors between lumber prices, between the trade tariffs, and lumber availability. We know we have a decreasing fiber supply in the Interior. However, if workers are impacted to a degree that is more than a week, we’re there to help. We have a crisis team to communities if there’s a major shutdown,” said Donaldson.

“What we’re focusing on, though, is reducing those kind of potential shutdown and really managing the transition processes as the annual allowable cut decrease.”

Under ‘zeroing,’ the Canadian price of lumber is compared with its U.S. import price, and adjusted for transportation and handling costs. Industry experts say if the appeal process is unsuccessful, the World Trade Organization ruling would not come into effect for years.