Canada braces for `tough times´ in U.S. lumber dispute
(The Star Travel)

OTTAWA—The federal government is looking at assistance to help Canada’s lumber industry with the “tough times� that loom ahead after Washington rekindled the long-simmering softwood lumber dispute by slapping new tariffs on Canadian exports.After an encouraging start to Canada-U.S. relations under U.S. President Donald Trump, Ottawa now finds itself fighting a two-front trade war on dairy and lumber laced with heated rhetoric, costly new tariffs and veiled threats of more action to come.On Tuesday, federal officials scrambled to respond to Washington’s decision to impose tariffs averaging 20 per cent on Canadian softwood products, the latest chapter in a trade dispute that has spanned decades and successive governments on both sides of the border.Natural Resources Minister Jim Carr denounced the American move, saying that Canada “disagrees strongly� and that the U.S. reasoning for the tariffs is “unfounded.�He said the federal government and provinces are looking are possible assistance for the lumber industry to cope with the expected fallout.One official said the fact that lumber prices are at a record high will help dampen the impact for now. But if past disputes are any indication, job losses are inevitable, Carr said.The Americans have complained in the past that Canadian softwood lumber, typically harvested off crown lands, is subsidized through artificially low stumpage fees. But Carr dismissed those complaints as “unfair� and “unfounded.�Additional trade penalties on Canadian lumber could be coming when the U.S. Commerce Department decides in June whether to impose anti-dumping tariffs.Carr said that the government is weighing all possibilities to fight the U.S. tariffs, including a possible challenge through the World Trade Organization or under provisions set out by the North American Free Trade Agreement. But those challenges may have to wait until after the U.S ...