Canada to challenge US softwood lumber duties

Mary Ng (left), Canadian Minister of International Trade, Export Promotion, Small Business and Economic Development speaks during a press conference with United States Trade Representative Ambassador Katherine Tai in Ottawa, Canada on May 5, 2022. (DAVE CHAN / AFP)

OTTAWA- The Canadian federal government said on Monday that it will challenge the United States' duties on softwood lumber.

Canada will challenge, under Chapter 10 of the Canada-United States-Mexico Agreement (CUSMA), the final results of the US Department of Commerce's third administrative reviews of its anti-dumping and countervailing duty orders on softwood lumber from Canada, said Mary Ng, the Canadian minister of international trade, in a statement.

Canada will challenge, under Chapter 10 of the Canada-United States-Mexico Agreement (CUSMA), the final results of the US Department of Commerce's third administrative reviews of its anti-dumping and countervailing duty orders on softwood lumber from Canada

Canada is disappointed that the United States continues to impose "unwarranted and unfair" duties on softwood lumber from Canada, Ng said, adding that the only fair outcome would be for the United States to meet its CUSMA obligations and cease applying unjustified duties on all Canadian softwood lumber products.

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"These unjustified duties on softwood products from Canada not only harm Canadian communities, businesses, and workers, but they amount to a tax on US consumers, affecting housing affordability at a time of supply challenges and inflationary pressures," she said.

The minister said taking legal action under CUSMA represents another step in Canada's ongoing defence of its forestry sector.

The softwood lumber industry is a key driver of economic activity across Canada and an essential component of the country's forestry sector, which contributed more than C$34.8 billion (US$28 billion) to its GDP in 2021 and employs some 205,000 workers, according to the statement.

On Aug 4, the US Department of Commerce issued the final results of the third administrative reviews of its anti-dumping and countervailing duty orders, and the new combined "all others" rate that will apply to exports from companies that are subject to the third administrative reviews is 8.59 percent, the statement said.

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