Canada criticizes U.S. lumber duties put in place on Wednesday

A log driver works a barge of Canadian logs at Squamish Mills Ltd in Howe Sound near Squamish, British Columbia, Canada, April 25, 2017.

WINNIPEG, Manitoba (Reuters) – The Canadian government on Wednesday criticized the United States for a decision to impose duties on certain softwood lumber exports and underlined its determination to fight the move.

The duties, which went into effect on Wednesday, are “unfair, unwarranted and troubling,” Foreign Minister Chrystia Freeland said in a statement.

Ottawa has already launched challenges against the duties – which range from about 10 percent to nearly 24 percent, below a preliminary range of about 17 percent to 31 percent – with the World Trade Organization and through NAFTA.

The U.S. Commerce Department’s decision will impose anti-dumping and anti-subsidy duties affecting about $5.66 billion worth of lumber and comes amid increasingly acrimonious talks on renegotiating NAFTA, the trilateral trade pact between the United States, Canada and Mexico.

Joe Patton, U.S. Lumber Coalition Co‐Chair and Vice President of Wood Products at The Westervelt Company, defended the duties.

“These duties are a fair enforcement of U.S. trade law. For decades, the Canadian government has abused the law and provided massive subsidies to its lumber industry, harming U.S. producers and workers,” he said on Wednesday.

The decision to impose tariffs followed failed talks to end the decades-long dispute between the two countries. The row centers on the fees paid by Canadian lumber mills for timber cut largely from government-owned land. Those fees are lower than fees paid on U.S. timber, which comes largely from private land.

The U.S. Commerce Department accuses Canada of unfairly subsidizing and dumping softwood lumber, which is commonly used in the construction of homes. Canada denies it is dumping the lumber.

The US Dept of Commerce was not immediately available for comment on Wednesday.

(Reporting by Rod Nickel in Winnipeg, Manitoba; and David Ljunggren in Ottawa; writing by Sue Thomas; Additional reporting by Lesley Wroughton in Washington; Editing by Chizu Nomiyama and Jim Finkle)

Trump to add North Korea sanctions, allies call for strict enforcement

U.S. President Donald Trump looks on during his meeting with Afghan President Ashraf Ghani during the U.N. General Assembly in New York, U.S., September 21,

By Steve Holland and David Brunnstrom

NEW YORK (Reuters) – U.S. President Donald Trump said on Thursday the United States will add more sanctions against North Korea, while U.S. allies have called for enforcing existing international sanctions as the best way to get Pyongyang to give up its nuclear weapons program.

The sanctions are not expected to further target oil, a senior Trump administration official told Reuters.

Tensions have risen over North Korea’s nuclear and ballistic missile tests, despite intense pressure from world powers. The U.N. Security Council has unanimously imposed nine rounds of sanctions on North Korea since 2006, the latest earlier this month capping fuel supplies to the isolated state.

“We will be putting more sanctions on North Korea,” Trump said in response to a question at a meeting with Afghan President Ashraf Ghani in New York on the sidelines of the annual gathering of world leaders at the United Nations.

Trump would make the announcement at lunch with Japanese Prime Minister Shinzo Abe and South Korean President Moon Jae-in, officials said.

Trump said before the lunch that he and Moon were discussing trade issues and North Korea. “I think we’re making a lot of progress in a lot of ways,” Trump told reporters.

Moon, sitting with Trump and their respective delegations, said the U.S. president’s warning to Pyongyang in his speech at the U.N. on Tuesday “will also help to change North Korea.”

Trump warned North Korean leader Kim Jong Un in his address that the United States, if threatened, would “totally destroy” his country of 26 million people.

It was Trump’s most direct military threat to attack North Korea and his latest expression of concern about Pyongyang’s repeated launching of ballistic missiles over Japan and underground nuclear tests.

North Korea’s foreign minister likened Trump to a “barking dog” in response.

On Thursday, South Korea’s Moon said sanctions were needed to bring Pyongyang to the negotiating table and force it to give up its nuclear weapons, but Seoul was not seeking North Korea’s collapse.

“All of our endeavors are to prevent war from breaking out and maintain peace,” Moon said in his speech to the U.N. General Assembly. He said that Pyongyang’s nuclear issue “needs to be managed stably so that tensions will not become overly intensified and accidental military clashes will not destroy peace.”

Moon, a former human rights activist whom Trump has accused of appeasement towards North Korea, said: “We will not seek unification by absorption or artificial means.”

Moon said all countries must strictly adhere to U.N. sanctions on North Korea and impose tougher steps in the event of new provocations by Pyongyang.

U.S. Treasury Secretary Steven Mnuchin will hold a news briefing at 3 p.m. (1900 GMT) in which he is expected to discuss the Trump administration’s sanctions announcement.

U.N. ambassador Nikki Haley will brief the news media at 4:30 p.m. (2030 GMT), the White House said.

In Geneva, North Korea told a U.N. rights panel that international sanctions would endanger the survival of North Korean children.

 

AID PLAN

South Korea approved a plan on Thursday to send $8 million worth of aid to North Korea, as China warned the crisis on the Korean peninsula was getting more serious by the day.

The last time the South had sent aid to the North was in December 2015 through the United Nations Population Fund (UNFPA) under former President Park Geun-hye.

North Korea conducted its sixth and largest nuclear test on Sept. 3 and has launched numerous missiles this year, including two intercontinental ballistic missiles and two other rockets that flew over Japan.

The United States and South Korea are technically still at war with North Korea because the 1950-53 Korean conflict ended with a truce and not a peace treaty. The North accuses the United States, which has 28,500 troops in South Korea, of planning to invade and regularly threatens to destroy it and its Asian allies.

Earlier this month, Mnuchin warned China, North Korea’s main ally and trading partner, that if it did not follow through on new U.N. sanctions on Pyongyang, Washington would “put additional sanctions on them and prevent them from accessing the U.S. and international dollar system.”

Last month, the Trump administration blacklisted 16 Chinese, Russian and Singaporean companies and people for trading with banned North Korean entities, including in coal, oil and metals. However, it did not sanction Chinese banks that experts and former U.S. officials say enable North Korea’s international trade, often by laundering funds through the United States.

On Wednesday, U.S. Secretary of State Rex Tillerson told a news conference there “some indications” that sanctions were beginning to cause fuel shortages in North Korea.

 

(Reporting by Steve Holland and David Brunnstrom; additional reporting by Michelle Nichols and Susan Heavey; Writing by Yara Bayoumy; Editing by Grant McCool)