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The Canadian Parvasi - Issue 24

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<strong>The</strong> International News Weekly CANADA<br />

December 08, 2017 | Toronto<br />

05<br />

Canada's softwood imports harm our industry: US agency<br />

Agencies<br />

TORONTO: Canada's<br />

softwood lumber industry<br />

suffered another blow<br />

Thursday when the U.S.<br />

International Trade Commission<br />

unanimously voted<br />

that American producers<br />

have been harmed by imports<br />

of subsidized <strong>Canadian</strong><br />

lumber.<br />

In a 4-0 vote, the agency<br />

sided with the U.S. lumber<br />

coalition, which complained<br />

that <strong>Canadian</strong><br />

lumber was subsidized and<br />

that it was dumped into the<br />

American market at artificially<br />

low prices.<br />

Most <strong>Canadian</strong> producers<br />

will now pay a combined<br />

countervailing and<br />

anti-dumping rate of 20.83<br />

per cent, down from 26.75<br />

per cent in the preliminary<br />

determinations issued earlier<br />

this year.<br />

<strong>Canadian</strong> producers<br />

have paid about $500 million<br />

in deposits for the duties<br />

thus far.<br />

<strong>The</strong> duties have added<br />

to the cost of building a<br />

home in the United States.<br />

<strong>Canadian</strong> unions and lumber<br />

companies fear the issue<br />

will eventually cause<br />

layoffs.<br />

Natural Resources<br />

Minister Jim Carr said in<br />

Ottawa the duties are unnecessary<br />

and are being<br />

challenged by the <strong>Canadian</strong><br />

Ontario crackdown on auto<br />

insurance fraud to lower rates<br />

Continued from page 01<br />

<strong>The</strong> plan would also establish a Serious Fraud Office,<br />

staffed in part by officers from the Ontario Provincial<br />

Police, to tackle abuse in the system.<br />

Finance Minister Charles Sousa, who announced<br />

the measures with Attorney General Yasir Naqvi, said<br />

the cost of auto insurance fraud is estimated to be as<br />

high as $1.6 billion a year. By cracking down on abuse,<br />

and holding people accountable, the government can<br />

achieve a "substantive rate reduction," he said.<br />

"Auto insurance fraud has become an industry,"<br />

Sousa said. "It's time to stop it. If you know someone who<br />

has been engaged in this crime let the Serious Fraud<br />

Office know. <strong>The</strong>y will pursue and investigate these<br />

fraudsters and bring them to justice." Sousa said the<br />

new measures will ensure accident victims receive appropriate<br />

care and are assessed independently by health<br />

professionals with no ties to an insurer. He could not immediately<br />

say what the plan will cost taxpayers or if it<br />

sets a specific rate reduction target.<br />

Sousa also urged insurance firms to take action<br />

against fraudsters.<br />

"If an insurance company, if the industry is telling<br />

us that there's abuse, there's fraud in the system, then<br />

stop settling," he said. "Stop settling fraud cases and let's<br />

start attacking the fraud and prosecuting the crime."<br />

A government-commissioned report earlier this<br />

year found that Ontario has the most expensive auto insurance<br />

premiums in Canada despite also having one of<br />

the lowest levels of accidents and fatalities.<strong>The</strong> average<br />

auto insurance premium in Ontario is $1,458, which is<br />

almost 55 per cent higher than the average of all other<br />

<strong>Canadian</strong> jurisdictions, the report found. If Ontario’s<br />

premiums were closer to the <strong>Canadian</strong> average of about<br />

$930, it would save Ontario drivers almost 40 per cent —<br />

or about $4 billion a year, it said. Tuesday's announcement<br />

comes as the Liberal government is still trying to<br />

fulfill a promise to reduce rates by 15 per cent on average<br />

from 2013 levels — rates have now decreased on average<br />

by about eight per cent since then. <strong>The</strong> government<br />

missed its self-imposed deadline of August 2015 to hit<br />

that target and Premier Kathleen Wynne has admitted<br />

that was a "stretch goal."<br />

Insurance company Aviva Canada said if the government<br />

implements its new measures, it will help lower<br />

rates. <strong>The</strong> company estimates fraud costs the insurance<br />

system $2 billion a year, nearly half a million more than<br />

the government estimates, said vice-president Gord Rasbach.<br />

"If you address the fraud piece you will make an<br />

impact on rates," he said. "Fraud, at the end of the day,<br />

someone has to pay for it. It really comes down to people<br />

who are milking the system (at the expense) of a lot more<br />

people who are paying and are honest."<br />

<strong>The</strong> opposition Progressive Conservatives said the<br />

Liberals are only acting on insurance rates now because<br />

an election is less than six months away.<br />

government.<br />

"<strong>The</strong>y're wrong. We<br />

have fought them before<br />

and we'll continue to defend<br />

Canada's interests," Carr<br />

said.<br />

He added the government<br />

is helping the industry<br />

by offering a support<br />

package, including loan<br />

guarantees at commercial<br />

rates, and working to expand<br />

export markets and<br />

transform the industry.<br />

He said the efforts<br />

should help to reassure the<br />

<strong>Canadian</strong> lumber industry<br />

despite the anxiety from<br />

duties. West Fraser Timber<br />

(TSX:WFT) pays the highest<br />

duties at 23.7 per cent.<br />

Canfor (TSX:CFP) is next at<br />

22.13, followed by Tolko at<br />

22.07, Resolute Forest Products<br />

(TSX:RFP) at 17.9 per<br />

cent and J.D. Irving at 9.92<br />

per cent. A Resolute Forest<br />

Products spokesman said<br />

the U.S. will now hold large<br />

industry deposits as "ransom"<br />

in hope of pushing the<br />

<strong>Canadian</strong> government to<br />

sign a "bad deal."<br />

"Sorry U.S., that's not<br />

going to happen. Canada is<br />

not going to be bullied into<br />

submission," Resolute's<br />

Seth Kursman said in an interview<br />

from Washington,<br />

D.C.<br />

He added that the financial<br />

health of American<br />

firms is clear evidence that<br />

no injury has been suffered.<br />

"<strong>The</strong> U.S. industry has<br />

been crowing about its prosperity<br />

for over a year. It is<br />

making more money than<br />

at any previous time in history."<br />

<strong>The</strong> B.C. Lumber Trade<br />

Council said the ruling,<br />

while not unexpected, is<br />

"completely without merit."<br />

Council president Susan<br />

Yurkovich said the process<br />

is biased in favour of<br />

the U.S. industry. "We are<br />

confident that this latest decision<br />

by the ITC will again<br />

be reversed," she said in a<br />

news release.

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