RBC Capital Markets analyst Paul Quinn says Canadian lumber producers have plunked down an estimated CA$500 million so far in countervailing and antidumping duties after the US accused Canada of unfairly subsidising its softwood industry in the spring.
Canada says it absolutely does not subsidise the industry, but cannot officially challenge the US tariffs until after final decisions are made about the level of duties to be imposed some time this fall.
The US cannot produce enough wood to meet demand and it has to come from somewhere, and the somewhere is proving to be Europe, with imports from Germany up 916 per cent in the first six months of the year compared with the same period last year.
Imports from Austria were up 178 per cent, Romania 141 per cent, Russia 42 per cent and Sweden 41 per cent.
