NAFTA's lumber ruling causes U.S. to rethink duties

On April 30th, the US Department of Commerce (DOC) issued a redetermination of its antidumping duties (AD) for certain softwood lumber products from Canada.

Canadian Forest Industries reported that the DOC has reassessed its antidumping duties for certain softwood lumber products imported from Canada. A review, initiated on April 30, 2024, was prompted by a directive from a NAFTA Chapter 19 Binational Panel issued on October 5th, 2023. The investigation period spanned from October 1st, 2015, to September 30th, 2016.

In their reassessment, ordered after the decision by the North American Free Trade Agreement (NAFTA) Chapter 19 panel on U.S. countervailing duties on Canadian softwood lumber, determined new estimated weighted-average dumping margins for various Canadian lumber companies. 

The Commerce Department's review calculated a weighted estimated dumping margin of:

  • 6.63 percent for Canfor, 
  • 3.08 percent for Resolute, 
  • 7.14 percent for Tolko, and 
  • 5.18 percent for West Fraser. 

For all other Canadian softwood lumber producers, the recalculated rate is 5.66 percent, which is slightly lower than the original rate of 6.04 per cent, according to CFI. This all-others rate was derived from a weighted average of the dumping margins calculated for the mandatory respondents.

Mary Ng, Canada's Minister of Export Promotion, International Trade and Economic Development, said “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.

“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, she said, adding “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.”

 

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Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).