WASHINGTON -- The U.S. Department of Commerce released its final determination of a combined anti-subsidy and anti-dumping duty rate of 7.99% in the fourth annual review of traded Canadian softwood lumber imports into the United States. The review covers lumber imported in the calendar year 2021.

The ruling has garnered praise in the U.S. and consternation amongst lumber industry and government officials in Canada. 

Mary Ng, the Canadian Minister of Export Promotion, International Trade and Economic Development, said “Canada is very disappointed that the United States continues to impose unwarranted and unfair duties on Canadian softwood lumber. The only fair outcome would be for the United States to cease applying these baseless duties. Canada will continue to vigorously defend its softwood lumber industry and the entrepreneurs, workers and communities it supports."

Ng said the duties on Canadian softwood lumber "unjustifiably harm Canadian businesses and communities. They also amount to a punitive tax on U.S. businesses that need Canadian lumber, which hampers their ability to grow and to create U.S. jobs." 

“Moreover," she said, "these unwarranted duties are detrimental to our highly integrated supply chains and economies. Rather than protecting U.S. jobs and businesses, the duties have instead led to a spike in imports from offshore suppliers to fill the gap in demand."

The Canada-U.S. softwood lumber dispute has become one of the most enduring trade disputes between both nations. Over the past 25 years, the United States lumber industry has frequently sought U.S. government restrictions on Canadian softwood lumber imports through the application of U.S. countervailing duty and antidumping laws – laws that allow the imposition of import duties when a U.S. industry is allegedly harmed by subsidies in the exporting country (countervailing duties), or by dumping, which is when a U.S. industry is allegedly harmed by imported products sold at prices that are lower than the cost of production or lower than prices in the domestic market (anti-dumping duties). 

The U.S. Department of Commerce conducts an annual review of anti-dumping and countervailing duty orders. The annual review process is similar to the process for initial investigations but applies only to companies that are subject to review. 

According to a statement from the Canadian government's trade office, the new combined “all others” duty rate that will apply to most softwood lumber exports is 7.99%, compared to the previous rate of 8.59% from the third administrative reviews. These new rates will apply on a going-forward basis to exports of softwood lumber products to the United States from companies that were subject to the fourth administrative reviews. In addition, these new anti-dumping and countervailing duty rates will apply retroactively to softwood lumber exports to the United States made in calendar year 2021 from companies that were subject to the fourth administrative review.

"The softwood lumber trade cases help offset Canadian lumber subsidies and dumping, allowing U.S. lumber manufacturers to compete in a fair market, invest in their businesses, and supply more U.S. lumber milled by U.S. workers to build U.S. homes," said Andrew Miller, chairman of the U.S. Lumber Coalition and CEO of Stimson Lumber.  

According to the lumber group's release, the U.S. lumber industry established its right to the imposition of antidumping and countervailing duties in the face of unfair competition from Canada in 2017, and the industry continues to vigorously defend the existence and enforcement of those duties in all appropriate fora.

"Continued full enforcement of the U.S. trade laws by the Commerce Department and the International Trade Commission is exactly what must happen for enduring expansion of U.S. lumber manufacturing and availability to meet demand to build more American homes," added Miller.

"Failure to fully enforce the trade laws would only undermine long-term confidence in expanding U.S. sawmilling capacity and jobs in the American softwood lumber industry, which could cause significant supply disruptions for the U.S. market," concluded Miller. 

Both groups say they remain open to a new U.S.–Canada softwood lumber trade agreement.