24 May 2005

NAFTA Panel Once Again Declares US Softwood Lumber Countervailing Duties Illegal

The following news release is from International Trade Canada.

International Trade Minister Jim Peterson welcomed a NAFTA Dispute Settlement Panel ruling that the United States Department of Commerce (DOC) countervailing duties on Canadian softwood lumber are contrary to U.S. law. The NAFTA Panel has directed the DOC to correct its determination….

As a result of the three earlier NAFTA Panel decisions in this case, the DOC has reduced the original subsidy finding from 18.79 percent to 1.88 percent. However, Canadian exporters continue to pay an unjustified 16.37 percent subsidy rate imposed by the DOC following its December 2004 countervailing duty administrative review. Canada continues to argue that Canadian lumber production is not subsidized.