Canada Challenges U.S. Duty Lumber Duty
Canada launches legal challenges to duty increases on U.S. softwood
In August, the United States Department of Commerce nearly doubled duties on softwood lumber. Its fifth administrative review of the duties increased the rate from just over 8% to a little more than 14.5%.
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 U.S. lumber industry has frequently sought government restrictions on Canadian softwood lumber imports through the application of U.S. countervailing duty and anti-dumping laws. These laws 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. This 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).
