March 24, 2002	Sunday	Muharram 9, 1423

WASHINGTON, March 23: Just weeks after a US decision to curb steel imports, a new trade row erupted on Friday as Washington slapped an average 29 per cent duty on Canadian softwood timber in a dispute over dumping.

The move provoked a harsh reaction from Washington’s northern neighbour and from companies affected by the decision, which called the action protectionist.

The final figure — which represents anti-dumping duties as well as compensatory tariffs — is only slightly modified from the provisional rate of 32 per cent announced last year for many softwood products.

“We found that producers/exporters of certain softwood lumber products from Canada have benefited from counter available subsidies,” the US Commerce Department said.

“We also found that Canadian producers/exporters of softwood lumber have sold their product below fair market value.”

The tariff includes a 19.34 per cent compensatory duty, increased slightly from the initial rate of 19.31 per cent. It also includes an average “dumping margin” of 9.67 per cent — from an initial proposed 12.58 per cent — but the rate for different firms will vary from 2.26 per cent to 15.83 per cent, the agency said.

The countervailing duty was imposed on a provisional basis last year but expired in December, when a temporary compensatory duty was imposed. The tariffs must still be confirmed by the quasi-judicial International Trade Commission in May.

Friday’s action was swiftly denounced by Ottawa, which was involved in last-ditch talks to avert the duties.—AFP