CANADA TO APPEAL WTO DECISION ON U.S. SOFTWOOD LUMBER DUTIES Canada will appeal the recent decision by a World Trade Organization (WTO) panel to allow the United States to use “zeroing” to calculate lumber anti-dumping tariffs, according to Foreign Minister, Chrystia Freeland. Zeroing calculates tariffs based on whether the domestic price of a product exceeds its U.S. import price after it is adjusted for transportation and handling costs. “We firmly believe that the U.S. duties on Canadian softwood lumber are unfair and unwarranted,” Freeland said in a statement. “That is why we are challenging these duties at the WTO and under NAFTA.” Canada had launched the technical dispute with the WTO in 2017, saying it would forcefully defend its lumber industry, but after the long-awaited decision by the WTO panel they have sided with the United States. Trade tensions between the United States and Canada are heating up again after the two coun- tries together with Mexico agreed on a free-trade deal to replace NAFTA last year. It is expected that Canada will boost its retaliato- ry tariffs against the United States for its punitive measures on Canadian exports of steel and aluminum, which were introduced last year and now softwood lumber.
US MANUFACTURING OUTPUT FLAT FOR MARCH U.S. manufacturing output was unchanged in March after two straight monthly declines, leading to the largest quarterly decrease in production since 2017. The Federal Reserve reported that manufactur- ing production last month was restrained by weak motor vehicle output. The outlook for the manufacturing sector, which accounts for about 12 percent of the economy is concerning as companies are not confident about new orders and shipments. Manufacturing is slowing as stimulus to capital spending from last year’s $1.5 trillion tax cut package diminishes. Activity is also being hobbled by a trade war between the United States and China as well as by last year’s surge in the dollar and softening global economic growth, which are hurting exports.
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SPOTLIGHT ON BUSINESS MAGAZINE • APRIL 2019
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