1 September 2004

Canada Welcomes Third NAFTA Ruling on Threat of Injury regarding Softwood Lumber

The Minister for International Trade, the Honourable Jim Peterson, PC, MP welcomed a NAFTA Panel report that found for the third time that the US International Trade Commission (ITC) threat of injury determination was inconsistent with US law.

The NAFTA Panel instructed the ITC to issue a determination consistent with the Panel’s ruling within ten days.

On 22 May, 2002 the ITC determined that the US softwood lumber industry was threatened with material injury by alleged subsidized and dumped imports of softwood lumber from Canada. This threat of injury followed the US Department of Commerce subsidy and dumping determinations, and resulted in the imposition of countervailing duties (18.79 per cent) and anti-dumping duties (8.43 per cent).

Canada also challenged the ITC’s threat of injury determination at the WTO. On 26 April 2004, the WTO Dispute Settlement Body adopted a WTO Panel report that found the ITC’s treat of injury determination to be inconsistent with WTO rules.