Softwood Lumber Trade Dispute
Recent Developments
January 2019, the Government of Canada published information regarding the impacts of the current United States Government partial shut down on the First Administrative Review (AR1). Each year (unless the case is settled), an administrative review will be conducted to recalculate the countervailing and antidumping duty rates for shipments during the period of review and to establish a new cash deposit rate for future shipments. A company is subject to the review if there has been a specific request for a review of that company filed by interested parties with the U.S. Department of Commerce.
January 3, 2018, the U.S. Department of Commerce published the countervailing (CVD) and antidumping (AD) duty orders in the Federal Register.
- U.S. Department of Commerce CVD Order
- U.S. Department of Commerce AD Order
- Government of Canada Statement
As a result, they will issue instructions to U.S. Customs and Border Protection to collect CVD and AD duties on all lumber shipments from Canada since December 28, 2017.
The U.S. Department of Commerce also corrected certain ministerial errors, and published the amended final CVD and AD rates as follows:
| Company | CVD | AD |
|---|---|---|
| Canfor | 13.24% | 7.28% |
| Irving | 3.34% | 6.04% |
| Resolute | 14.70% | 3.20% |
| Tolko | 14.85% | 7.22% |
| West Fraser | 17.99% | 5.57% |
| All others | 14.19% | 6.04% |
Following the publication of the CVD order, companies, who were not individually examined in the CVD investigation, have 30 days to request the U.S. Department of Commerce to conduct an Expedited Review to establish a company specific rate for each requesting company. See fact sheet for additional information on Expedited Reviews.
December 28, 2017, the U.S. International Trade Commission (ITC) published their final injury determination in the Federal Register.
December 7, 2017, the U.S. International Trade Commission (ITC) made its injury determination
- The ITC ruled that softwood lumber imports from Canada have materially injured the U.S. domestic lumber industry
- The ITC made a negative finding on critical circumstances in the AD investigation. This means no retroactive duties are required.
The ITC’s determination of material injury provides the legal basis for the U.S. DOC issuance of CVD and AD duty orders. Consequently, softwood lumber imports from Canada will be required to pay CVD and AD duties starting on the date the ITC ruling is published.
November 2, 2017, the U.S. Department of Commerce issued final determinations in the CVD and AD duty cases.
- Government of BC News Release (November 2, 2017)
- Government of Canada Statement (November 2, 2017)
- U.S. Department of Commerce Fact Sheet (November 2, 2017)
Product Scope: A summary of the Product Scope Final Determination is found on pages 1 to 3 of the Department of Commerce fact sheet.
Appeals
- December 5, 2017, the Government of Canada filed a notice of intent to appeal under Chapter 19 with the NAFTA Secretariat regarding the antidumping investigation.
- November 28, 2017, the Government of Canada formally requested World Trade Organization (WTO) consultations on U.S. duties on Canadian softwood lumber.
- Government of Canada Statement (November 28, 2017)
- November 14, 2017, the Government of Canada filed a notice of intent to appeal under Chapter 19 with the NAFTA Secretariat regarding the countervailing duty investigation.
The links below give further information and updates on various topics related to this Canada-U.S. trade issue. Please also check the federal government website for additional updates, frequently asked questions and announcements.
Frequently Asked Questions
Other Softwood Lumber Information
- Ambassador MacNaughton issued a letter to U.S. Representatives correcting the record (November 3, 2017)
- Federal Government Announces Support for Forest Sector Workers and Families (June 1, 2017)
- Contact Information: Government of Canada Softwood Lumber Action Plan (June 6, 2017). Government of Canada's list of contacts for companies and workers to get more information on announced programs.
- Federal-Provincial Task Force on Softwood Lumber Announced, February 22, 2017
- Fact Sheets
- Canada-U.S. softwood lumber trade: Why it should matter to Americans (February 15, 2017)
- Government support for forestry dependent communities (updated April 7, 2017)
- B.C.’s forest economy: softwood lumber (February 15, 2017)
- Canada-U.S. Softwood Lumber Trade (updated April 26, 2017)
- Trade Litigation 2017
- Negotiations 2015 - 2017
- Background on the Softwood Lumber Agreement 2006
