Softwood Lumber Trade Dispute
Recent Developments
January 5, 2021, the U.S. Department of Commerce announced the Third Administrative Review (AR3) of antidumping duty (AD) and countervailing duty (CVD) investigations of imports of certain softwood lumber products from Canada. This publication formally notifies parties of their opportunity to request a review for both the AD and CVD cases.
- U.S. Federal Register: Announcement Notice of AR3 (PDF, 214 KB)
- Government of Canada Questions and Answers
December 1, 2020, the U.S. Department of Commerce published the final results of the countervailing duty (CVD) case for the First Administrative Review (AR1) in the Federal Register.
- US Federal Register: Final Results of AR1 CVD case (PDF, 74 KB)
November 30, 2020, the U.S. Department of Commerce published the final results of the antidumping duty (AD) case for the First Administrative Review (AR1) in the Federal Register.
- U.S. Federal Register: Final Results of AR1 AD case (PDF, 244 KB)
November 24, 2020, the U.S. Department of Commerce released its final determination for AR1 in antidumping duty (AD) and countervailing duty (CVD) investigations of imports of certain softwood lumber products from Canada.
This final determination includes both an assessment rate (see table 1 below), to be applied to exports during the period of review (April 28, 2017 through December 31, 2018) and a new cash deposit rate that will apply to new shipments upon completion of this review. These rates will only be applicable to companies covered by the First Administrative Review, see U.S. Department of Commerce Notices for AD (PDF, 138 KB) and CVD (PDF, 144 KB) investigations.
Company | CVD - AR1 Assessment | AD - AR1 Assessment | Total - AR1 Assessment |
---|---|---|---|
Canfor | 2.94% | 1.99% | 4.93% |
J.D. Irving | 3.43% | 1.57% | 5.00% |
Resolute | 18.71% | 1.15% | 19.86% |
West Fraser | 6.76% | 1.40% | 8.16% |
All Others | 7.26% | 1.57% | 8.83% |
Once the final determination is published in the Federal Register (expected within 5-7 days) the new cash deposit rates, see table 2 below, will apply for new shipments.
Company | CVD - AR1 Cash Deposit | AD - AR1 Cash Deposit | Total - AR1 Cash Deposit |
---|---|---|---|
Canfor | 2.63% | 1.99% | 4.62% |
J.D. Irving | 2.66% | 1.57% | 4.23% |
Resolute | 19.10% | 1.15% | 20.25% |
West Fraser | 7.57% | 1.40% | 8.97% |
All Others | 7.42% | 1.57% | 8.99% |
July 21, 2020, the U.S. Department of Commerce announced new deadlines for all antidumping duty (AD) and countervailing duty (CVD) administrative reviews. In response to a recent surge in the filing of new AD and CVD petitions and investigations and the ongoing COVID-19 world wide pandemic, they have decided to further uniformly toll deadlines for all AD and CVD administrative reviews by an additional 60 days.
- U.S. Department of Commerce Second Memo on Tolling of Deadlines Regarding all CVD and AD Administrative Reviews (July 21, 2020)
June 3, 2020, the U.S. Department of Commerce announced they are fully extending the deadline for the Final Determination of the First Administrative Review.
April 24, 2020, the U.S. Department of Commerce announced new deadlines for all antidumping duty (AD) and countervailing duty (CVD) administrative reviews. In response to operational adjustments due to COVID-19, they have decided to uniformly toll deadlines for all AD and CVD administrative reviews by 50 days.
- U.S. Department of Commerce Memo on Tolling of Deadlines Regarding all CVD and AD Administrative Reviews (April 24, 2020)
March 10, 2020, the U.S. Department of Commerce initiated the Second Administrative Review (AR2) of antidumping duty (AD) and countervailing duty (CVD) investigations of imports of certain softwood lumber products from Canada. 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.
- U.S. Federal Register: Initiation Notice of AR2 (March 10, 2020). Specifically, for the list of softwood lumber exporters subject to the AD AR2 proceedings see page 3 and those subject to the AR2 CVD proceedings see page 9.
February 3, 2020, the U.S. Department of Commerce released its preliminary determination for the First Administrative Review (AR1) in antidumping duty (AD) and countervailing duty (CVD) investigations of imports of certain softwood lumber products from Canada.
This preliminary determination includes both an assessment rate (see table 1 below), to be applied to exports during the period of review (April 28, 2017 through December 31, 2018) and a new cash deposit rate that will apply to new shipments upon completion of this review. These rates will only be applicable to companies covered by the First Administrative Review, see U.S. Department of Commerce Notices for AD (pdf) and CVD (pdf) investigations.
Company | CVD - AR1 Assessment | AD - AR1 Assessment | Total - AR1 Assessment |
---|---|---|---|
West Fraser | 7.07 | 1.57 | 8.64 |
Canfor | 2.93 | 2.02 | 4.95 |
Resolute | 15.16 | 1.18 | 16.34 |
J.D. Irving | 3.47 | 1.66 | 5.13 |
All Others | 6.71 | 1.66 | 8.37 |
As both these rates are only preliminary, rates may change in the final determination; therefore, there is no change to the duties companies pay on their U.S. shipments. Once the final determination, expected to be released on November 23, 2020, is published in the Federal Register (expected approximately November 30, 2020) the new cash deposit rates (see table 2 below) will apply for new shipments.
The preliminary new cash deposit rates that would be applied on new shipments after publication of the Final Determination in November, 2020 are as follows:
Company | CVD - AR1 Cash Deposit | AD - AR1 Cash Deposit | Total - AR1 Cash Deposit |
---|---|---|---|
West Fraser | 7.51 | 1.57 | 9.08 |
Canfor | 2.61 | 2.02 | 4.63 |
Resolute | 14.66 | 1.18 | 15.84 |
J.D. Irving | 2.66 | 1.66 | 4.32 |
All Others | 6.55 | 1.66 | 8.21 |
January 2, 2020, the U.S. Department of Commerce announced the Second Administrative Review (AR2) of antidumping duty (AD) and countervailing duty (CVD) investigations of imports of certain softwood lumber products from Canada.
- U.S. Federal Register: Announcement Notice of AR2 (January 2, 2020)
- Government of Canada Questions and Answers
March 28, 2019, the U.S. Department of Commerce initiated the First Administrative Review (AR1) of antidumping duty (AD) and countervailing duty (CVD) investigations of imports of certain softwood lumber products from Canada.
- U.S. Federal Register: Initiation Notice of AR1 (April 1, 2019)
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.
Appeals
World Trade Organization
The World Trade Organization (WTO) Agreement includes a dispute resolution mechanism; a request can be made for a WTO panel to be established to determine whether a country's actions are consistent with the WTO agreements. Canada has filed appeals of both the AD and CVD investigations.
- Information related to the antidumping investigation (AD)
- Information related to the countervailing duty investigation (CVD)
- 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)
North American Free Trade Agreement - Chapter 19
The North American Free Trade Agreement (NAFTA), Chapter 19, provides for binational panels to review final determinations made in CVD and AD cases.
- Information related to the International Trade Commission (ITC) injury case - panel hearing scheduled for May 7, 2019
- Information related to the antidumping investigation - panel has not yet been formed
- 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.
- Information related to the countervailing duty investigation - panel has not yet been formed
- 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.
- 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