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   From: j__carlson@gmx.com   
      
   Big disappointment — Biden is continuing Trump's horrible trade policies,   
   fucking over the American consumer.   
      
      
      
   By Scott Lincicome   
      
   A few weeks ago, I explained how U.S. duties on imports of softwood lumber from   
   Canada could significantly affect the North American lumber market, even though   
   the published duty rate for most imports was only 9 percent. On Friday, the   
   Commerce Department gave us a perfect example of how this works in practice and   
   why the U.S. trade remedies (antidumping and countervailing duty) system needs   
   to be reformed.   
      
   In particular, various outlets reported that Commerce has published preliminary   
   findings in the second AD/CVD administrative review, more than doubling the   
   combined duty rate on Canadian lumber imported into the United States (from   
   8.99% for 2018 to 18.32% for 2019). This result shows three key concerns that I   
   raised in my previous post:   
      
       First, the U.S. AD/CVD system is highly uncertain, with duty rates   
       potentially changing significantly from period to period pursuant to annual   
       “administrative reviews.” This uncertainty acts as a significant   
   non‐​tariff   
       barrier on imports of goods subject to AD/CVD orders, beyond whatever the   
       rate is at the time of importation. And, in the case of lumber, it has been   
       exacerbated by the on‐​again, off‐​again nature of the   
   decades‐​long dispute.   
      
       Second, because the United States applies a “retrospective” system for   
       collecting duties on imports subject to AD/CVD orders, the new duty rate   
       announced last week for lumber (assuming it’s confirmed in final results   
       expected in November) would not apply to imports currently being imported   
   but   
       instead to lumber already imported back in 2019. Where final duty rates for   
       those products end up higher than the estimated rates applied at the time   
   of   
       importation, U.S. importers (who have no control over the process) would be   
       on the hook for the difference. Where the change is significant (as it   
   often   
       is), it can result in millions of dollars in new and unexpected duty   
       liability. Importers will also be forced to increase their cash deposits on   
       imports now coming in (in line with the higher rate), but they won’t   
   know for   
       years — when Commerce finishes its 2021 review — if they owe U.S.   
   Customs   
       more or less in final duties. All of this creates even more financial   
       uncertainty for importers, further discouraging them (especially smaller   
       ones) from importing lumber from Canada.   
      
       Finally, that Commerce doubled duty rates while lumber prices are sky high   
       (and perhaps threatening the U.S. economic recovery) again shows how   
       insulated the AD/CVD process is from economic reality. In this case, the   
   law   
       has no quick fix for “emergency” economic situations and expressly   
   prohibits   
       U.S. administering agencies (including Commerce) from considering duties’   
       harms to consumers or the broader “public interest.”   
      
   https://www.cato.org/blog/midst-skyrocketing-lumber-prices-comme   
   ce-department-doubles-tariffs   
      
   Bad policy.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)