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Let91Ƶs make a deal, Canada urges U.S. amid latest 91Ƶbaseless91Ƶ softwood lumber duties

U.S. producers continue to say stumpage system amounts to an unfair subsidy

Canada is urging the United States to make a good-faith effort at negotiating an end to the interminable bilateral dispute over softwood lumber.

International Trade Minister Mary Ng is making the overture after a fresh U.S. Commerce Department review maintained duties on softwood imports from Canada.

Ng says the duties, while modestly lower, remain an unfair, baseless and punitive measure that hurts the economy on both sides of the border.

She says a negotiated settlement is the only way the two countries will ever fully resolve the decades-old dispute.

Such a deal is unlikely: the U.S. has a fundamental problem with a regulatory regime in Canada that it says puts American producers at a disadvantage.

U.S. Trade Representative Katherine Tai has said the U.S. would be willing to negotiate, but only if Canada does away with its provincial stumpage fee system.

91ƵAn immediate negotiated solution to this long-standing trade issue is in the best interests of both our countries,91Ƶ Ng said in a statement.

91ƵCanada is disappointed that the United States is not meaningfully engaging in discussions on a return to predictable cross-border trade in softwood lumber.91Ƶ

The Commerce Department established a combined 91Ƶall others91Ƶ duty rate of 7.99 per cent, only slightly less than the 8.59 per cent established after the last administrative review.

Ottawa, meanwhile, will keep up the fight through the dispute resolution tools in the U.S.-Mexico-Canada Agreement, the World Trade Organization and the courts in the U.S., Ng said.

91ƵThe only fair outcome would be for the United States to cease applying these baseless duties.91Ƶ

In Canada, lumber-producing provinces set so-called stumpage fees for timber harvested from Crown land 91Ƶ a system that U.S. producers, forced to pay market rates, say amounts to an unfair subsidy.

Federal officials in Ottawa have said Canada would never agree to implement such a fundamental change to the way a key Crown resource is managed before the two sides have even sat down.

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