Officials in Ottawa and British Columbia have expressed their appreciation for a ruling under the North American Free Trade Agreement (NAFTA), which determined that certain aspects of the United States’ calculation of softwood lumber duties are inconsistent with its own laws. Canada’s Minister of International Trade, Mary Ng, released a statement expressing satisfaction with the NAFTA dispute panel’s agreement with Canada’s challenge of America’s “dumping determination.” The US Tariff Act allows the Department of Commerce to assess whether goods are being sold below fair value or benefiting from foreign government subsidies.
Minister Ng’s statement argues that the duties imposed on Canadian softwood lumber are unjustified, and that the U.S. government should immediately revoke them. The NAFTA panel instructed the Department of Commerce to review key aspects of its dumping determination. B.C. Forests Minister Bruce Ralston also welcomed the panel’s decision, stating that it is encouraging to see the extensive evidence supporting Canada’s claims being affirmed.
Minister Ralston emphasizes that neutral third-party reviews of the softwood lumber dispute have consistently deemed the duties unjustified. He points out that these duties have negative effects on both sides of the border, increasing material costs for Americans and creating uncertainty for Canadian forestry professionals and communities.
Minister Ng affirms that Canada will continue to advocate for its softwood lumber workers and industry, pursuing further legal challenges against the unjustifiable U.S. duties. The lengthy 60-page decision issued by the NAFTA panel upholds the U.S. Commerce Department’s decisions in five areas but requires further explanation in three areas, including the Commerce’s pricing methodology, treatment of export taxes under the 2006 Softwood Lumber Agreement, and its decision on startup adjustments for a mill in northern Ontario operated by a Montreal-based company owned by Paper Excellence.