USMCA Canada Softwood Determination

Canadian officials applauded Monday's  decision by the North American Free Trade Agreement (NAFTA) Chapter 19 panel on U.S. countervailing duties on Canadian softwood lumber:

“Canada welcomes the panel’s decision that U.S. duties on Canadian softwood lumber are inconsistent with U.S. law.

“The Canadian softwood lumber industry is a critical and reliable partner to the United States, creating jobs and making valuable contributions to our deeply integrated North American supply chains," said foreign minister Mary Ng in a statement.

“Although we are disappointed by certain aspects of yesterday’s decision, it is still an important step toward the elimination of U.S. countervailing duties and supports Canada’s long-standing position that U.S. duties on Canadian softwood lumber products are unfair and unwarranted.

“It is in the best interests of both Canada and the United States to find a durable, mutually acceptable resolution to this dispute, and Canada remains ready to work collaboratively toward that goal.”

• In November 2016, the U.S. softwood lumber industry requested the initiation of anti-dumping and countervailing investigations, which led to the imposition of duties on Canadian softwood lumber products beginning in early 2017
• Canada is actively defending its softwood lumber industry against these trade measures by challenging U.S. decisions imposing unfair duties on Canadian softwood lumber under NAFTA, the Canada-United States-Mexico Agreement, the WTO and the United States Court of International Trade