USMCA: Canada Challenges US Lumber Duties

Canada is filing a challenge under the US-Mexico-Canada Agreement on the US decision to maintain antidumping and countervailing duties on Canadian softwood lumber.

“Canada is disappointed that the United States continues to impose unwarranted and unjust duties on Canadian softwood lumber products,” Canadian International Trade Minister Mary Ng said in announcing the decision.

“These duties impact our innovative Canadian softwood industry. And with the significant current challenges in housing supply and affordability, these duties also harm US consumers and businesses that need Canadian lumber.”

The challenge is the latest in a long-standing dispute between the two North American allies over softwood lumber trade. It comes in response to a decision last November by the International Trade Commission to maintain the duties. In its five-year review, the ITC determined that lifting the duties would lead to material injury for US producers.

“At every opportunity, we continue to raise the issue of unjustified US duties on Canadian softwood lumber and underline the need to find an acceptable resolution of this dispute that works for our two countries and their businesses,” Ms. Ng said.

“Canada remains ready and willing to discuss a resolution that provides the stability and predictability the sector needs to ensure its continued growth and success.”

Under the USMCA dispute process, a binational panel will be established and tasked with determining whether the decision to maintain duties on Canadian softwood lumber products was reached in a manner consistent with US law.