USTR Seeks Comments on Possible 2 Year Extension of SLA
The U.S. Trade Representative is seeking comments on whether to extend the U.S.-Canada Softwood Lumber Agreement for two years, through October 15, 2015. The SLA, which entered into force in October 2006, is set to expire in October 2013. Comments are due by October 15, 2011.
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(The agreement states that SLA will remain in force for 7 years after the effective date and may be extended, by agreement, for an additional two years.)
SLA Constrains Softwood Lumber Exports From Canada When Demand Low
The U.S.-Canada Softwood Lumber Agreement settled litigation in U.S. and international venues and resulted in the revocation of antidumping and countervailing duty orders on softwood lumber from Canada. The SLA is designed to constrain softwood lumber exports from Canada into the U.S. when demand in the U.S. is low. In favorable market conditions, the SLA provides for unrestricted trade in softwood lumber.
As part of the SLA, the U.S. agreed to cease the collection of antidumping and countervailing duties upon softwood lumber from Canada and to refund $5 billion in deposits of duties. In exchange, Canada agreed, among other things, to apply export measures -- export charges and volume limitations -- to shipments of softwood lumber from Canada to the U.S. when the price of softwood products falls below a certain level.
(See ITT’s Online Archives or 06/29/11 news, 11062919, for BP summary of U.S. Customs and Border Protection clarifying incorrect SLA export charges posted on the International Trade Administration’s website.
See ITT’s Online Archives or 01/24/11 and 02/14/11 news, 11012419 and 11021449, for BP summaries of the most recent U.S. arbitration win regarding a Canadian breach of the SLA and Canada’s announcement to add certain export charges due to the ruling.)