Memorandum on the Export
of Softwood Lumber Products FromCanada
December 30, 1986
for the Secretary of Commerce, the United States Trade Representative
Determination Under Section 301 of the Trade Act of
to Section 301 of the Trade Act of 1974, as amended (19 U.S.C. 2411), I have
determined that the inability of the Government of Canada to collect an export
charge on exports of certain softwood lumber products to the United States of
America until at least January 8, 1987, is necessary to enforce the rights of
the United States under a trade agreement or is unjustifiable and unreasonable
and constitutes a burden or restriction on U.S. commerce and that expeditious
action is required. I also have determined in response to proclaim a temporary
increase in the rates of duty on certain softwood lumber products exported from
Canada. The increase will
apply to those products listed in the Appendix hereto and will add a surcharge
of 15 percent ad valorem to the rate of duty
currently applicable to each such product when exported from Canada. This
increase shall go into effect on December
and will terminate when the Government of Canada begins to collect the export
charge on exports of certain softwood lumber products, as they have agreed to
do in the Memorandum of Understanding between our two Governments signed today.
I direct the Secretary of Commerce to determine when the Government of Canada
begins to collect the export charge and, when he has made that determination,
to take all necessary and appropriate steps to end the imposition of the
temporary surcharge I have today declared.
of the objectives and commitments in the Understanding is of critical
importance. Therefore, I intend to take or to authorize all appropriate action
in response to any future failure by the Government of Canada to meet the
objectives and commitments of the Understanding.
the Governments of Canada and of the United States of
America have signed an agreement on trade in certain
softwood lumber products. This agreement will enhance the ability of our
softwood lumber industry to compete by negating the impact of Canadian
provincial practices which the U.S. Department of Commerce preliminarily
determined to be subsidies.
agreement successfully addresses the problems which led the U.S. softwood lumber
industry to file a petition under the countervailing duty law with the
Department of Commerce. As a result, the U.S. industry is withdrawing
its petition and the Department of Commerce will terminate its investigation.
the agreement, the Government of Canada will impose a 15 percent tax on exports
of softwood lumber to the United States. This tax may be phased
out as the Canadian provinces increase the charges imposed on softwood lumber
production. The Government of Canada has informed us that because of
administrative reasons they cannot begin to collect the export charge provided
for in the Understanding until at least January
Since the investigation being conducted by the Commerce Department was
terminated today, there will be at a minimum a nine-day period during which the
Canadians are not collecting the export charge. The temporary surcharge I have
declared is necessary to prevent an increase in exports of certain softwood
lumber products from Canada which would have the
effect of undermining the objectives of the Understanding.
determination shall be published in the Federal Register.
with the Office of the Federal Register, , December
The memorandum, which was released by the Office of the Press Secretary on
December 31, was printed in the ``Federal Register'' of January