Econ

Consumers Respond To WTO Procedural Ruling

On U.S. Trade Law In Softwood Lumber Dispute

Washington, D.C. (June 13) - A confidential World Trade Organization (WTO) ruling leaked to media today by the U.S. Trade Representative's office in which USTR claims that the WTO upheld the U.S. legal interpretation on the timing of its antidumping and countervailing duties in the U.S./Canada softwood lumber dispute is wrong, according to the American Consumers for Affordable Homes (ACAH). Canada is challenging the 27 percent duty the U.S. government has levied against Canadian lumber imports into the U.S. ACAH is an alliance of 18 leading associations and companies that represent the consumption of more than 95 percent of all lumber in the U.S.

"This procedural ruling changes nothing in the cases before the WTO and NAFTA, said Susan Petniunas, spokesperson for ACAH. Canada sought to jump-start their challenge against this unacceptable action by the U.S. forcing what is essentially a 27 percent sales tax on our consumers by challenging the legal underpinnings of the time frames the government uses to refund illegally collected countervailing and antidumping duties against softwood lumber".

"Clearly, what the WTO did not say is that if the U.S. illegally/unfairly collects 27 percent import tax on U.S. homebuyers, the U.S. does not have to refund when the U.S. loses this case in the WTO, which is how the U.S. protectionists and government will try to claim," Petniunas said. "All WTO said is that it would decide the issue if the US refuses to refund duties it collects illegally, which will not occur for a year, rather than in advance of the case moving forward."

Petniunas said that the U.S. consumers, who will bear the brunt of the tax on lumber, "remain confident that the WTO and NAFTA will