29 July 2002

WTO Lumber Dispute Finding Supports Canada

On 26 July the World Trade Organization (WTO) announced its finding that US duties on Canadian softwood lumber violate international trade rules.

The WTO agreed with Canada that the US was wrong in finding that Canadian provincial stumpage programs are subsidies. The final WTO report on Canada's challenge of the US Department of Commerce's preliminary determination of subsidy is expected in September.

Canada is also pursuing a WTO challenge of the final US determination of subsidy, and is preparing challenges of the final determinations of dumping and injury. The Government of Canada, the provinces and industry have also initiated three NAFTA cases regarding the US final subsidy, dumping and industry determinations. Those decisions are expected in 2003.