Tariifs:Lesser Of Two Evils
The Associated Press article, “More Tariffs for Lumber”, in the Times-Herald Record on October 31, 2001, discusses the new tariffs that the Bush administration will impose on Canadian lumber. The article states “Canada is dumping its wood on the United States at artificially low prices.” The new tariffs would add an additional 12.6 percent duty to the 19.3 percent tariff already imposed on Canadian softwood lumber in August 2001. The 19.3 percent tariff was established because the Bush administration “found the Canadian government unfairly subsidizes its industry.” “ The United States and Canadian lumber industries have batt . . .
On the one hand, it seems clear that the Canadian lumber industry has an unfair advantage because of the government subsidy and the U. The intent of a trade agreement is to form an economic community. If the Bush administration cannot find common ground with the Canadian lumber industry and their government, tariffs may be necessary. ” The United States lumber producers allege that “Canada charges unfairly low stumpage fees to companies that log on government lands, allowing Canadian firms to sell lumber in the U. ” The spokesperson for the Coalition for Fair Lumber Imports, a U. This article also discusses the barriers to international trade and the agreements to reduce trade barriers. NAFTA, covered in chapter 17, was created in 1989 and intended to eliminate tariffs over a 15-year period between Canada and the U. As with many economic issues, sometimes it is a matter of choosing the lesser of two evils. In turn, fewer units will be sold at the increased price causing fewer units to be imported. This article discusses protective tariffs, which are intended to protect domestic industries from competition by keeping the price of competing import level with or higher than the price of similar domestic products. ” Canadian producer deny the accusations and argue The North American Free Trade Agreement protects them. industry group, said, “ Canada really needs to fix an unfair trade system” and “the tariffs ought to get their attention.
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