Canada challenges U.S. softwood lumber duties under Canada-United States-Mexico Agreement

MARY Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, on Tuesday announced that Canada has filed notices that it will be challenging the final results of the U.S. 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).

She noted that 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. Filing these notices is another step that Canada is taking to defend the forestry sector and Canada’s national interests, she added.

Ng said in a statement: “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%. 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 U.S. 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.”