Canada challenges US softwood lumber duties under Canada-United States-Mexico Agreement

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Minister of Small Business, Export Promotion and International Trade, Mary Ng

By Caribbean News Global Caribbean News Global fav Canada challenges US softwood lumber duties under Canada-United States-Mexico Agreement

OTTAWA, Canada – On Tuesday, Canada filed notice that it will be challenging the final results of the US Department of Commerce’s second administrative reviews of the United States’ anti-dumping and countervailing duty orders on softwood lumber from Canada under Chapter 10 of the Canada-United States-Mexico Agreement (CUSMA).

“Rulings on this issue have consistently found Canada to be a fair trading partner, and Canada is confident that rulings will continue to find Canada to be one,” said Global Affairs Canada, and that “Filing these notices is another step that Canada is taking to defend the forestry sector and Canada’s national interests, noted a statement from Global Affairs Canada.”

Mary Ng, minister of international trade, export promotion, small business and economic development, in a statement regarding the United States’ unjustified duties on Canadian softwood lumber, said:

“Canada remains extremely disappointed that on November 24, 2021, the United States nearly doubled the duty rate applicable to most Canadian softwood lumber producers to 17.9 percent. Canada reaffirms its call for the United States to stop imposing unwarranted duties on Canadian softwood lumber products.

“Canada’s softwood lumber industry is an economic anchor for communities across the country and a key component of Canada’s forestry sector, which contributed more than $25 billion to the country’s GDP in 2020 and employed nearly 185,000 workers. The United States has long relied on Canadian lumber products to meet its domestic needs for high-quality building materials. These unjustified duties not only harm Canadian communities, businesses, and workers, but they are also a tax on US consumers, raising the costs of housing, renovations, and rentals.

“Canada has repeatedly communicated to the United States that it is willing to work toward a negotiated solution to this long-standing trade issue that would allow a return to predictable cross-border trade in softwood lumber for the benefit of workers in both countries. Canada will always defend its softwood lumber industry and the workers and communities it supports,” said minister Ng in a statement.

Quick facts

  • Canada’s decision to pursue these challenges under Chapter 10 of CUSMA was made in consultation with affected provinces, territories and industry leaders.
  • As part of the challenge to US softwood lumber duties under CUSMA, binational panels will be established and tasked with determining whether the duty rates in question were reached in a manner consistent with US law.
  • The US Department of Commerce conducts an annual review of its anti-dumping and countervailing duty orders.
  • Each annual US administrative review establishes duty assessment rates for shipments entered during a specific period and the new duty deposit rate going forward until the next administrative review.

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