Softwood Lumber Trade Dispute

Last updated on March 13, 2024

British Columbia and the forest industry have been engaged for decades with the United States in ongoing Softwood Lumber trade litigation. The 2006 Softwood Lumber Agreement provided stability and predictability until its expiry on October 12, 2015, triggering the latest round in the lumber dispute.

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Current state of Softwood Lumber trade with the U.S.

On November 25, 2016, the Committee Overseeing Action for Lumber International Trade Investigations or Negotiations ( “COALITION”) filed a petition with the U.S. Department of Commerce, alleging Canadian lumber is unfairly subsidized and dumped into the U.S. market, launching the “Lumber V” proceedings. B.C. is well prepared to respond to this litigation and will continue to defend B.C.'s interests against these unfounded allegations. B.C. is working alongside the federal government, other Provinces and the forest industry to respond to the ongoing litigation that imposes countervailing duties and anti-dumping duties on Canadian lumber. We also seek recourse through appeals to the US Court of International Trade, the World Trade Organization, and under the Canada/US/Mexico Agreement (formerly NAFTA).

Recent news

March 5, 2024: AR6 Initiation Notice

The U.S. Department of Commerce initiated the Sixth Administrative Reviews (AR6) of the antidumping duty (AD) and countervailing duty (CVD) orders for certain softwood lumber products from Canada. Each year (unless the case is settled), administrative reviews are conducted to recalculate the countervailing and antidumping duty rates for shipments during the period of review (January 1, 2023 to December 31, 2023) and to establish new cash deposit rates for future shipments.  A company is subject to the reviews if there has been a specific request for review of that company filed by interested parties with the U.S. Department of Commerce.


February 1, 2024: AR5 Preliminary Determination

The U.S. Department of Commerce released its preliminary determinations for the fifth administrative review (AR5) of antidumping (AD) and countervailing duty (CVD) duties on certain softwood lumber products from Canada.

The preliminary determinations do not have any impact on current duties or cash deposit rates. Rates will not change until the U.S. Department of Commerce issues its final determination, expected in August 2024. The preliminary determination rates are listed in the table below. See the U.S. Federal Register Notice for preliminary results of the AD (PDF, 242KB) and CVD (PDF, 235KB) investigations.

AR5 - Preliminary Results
*Not in effect until AR5 Final and may change - for information only.

Company CVD - AR5 AD - AR5 Total - AR5
Canfor 6.14% 9.65% 15.79%
West Fraser 6.74% 5.33% 12.07%
JD Irving 3.88% 7.15% 11.03%
Tolko 9.61% 7.15% 16.76%
All Others 6.71% 7.15% 13.86%

​November 30, 2023: ITC Sunset Review Decision

The U.S. International Trade Commission (ITC) has issued their sunset review decision. The ITC voted in favour of keeping the orders in place, which means that exports of softwood lumber from Canada will continue to be subject to antidumping and countervailing duties. Results of the sunset review will become official once the final determination is published in the U.S. Federal Register, expected late December 2023 or early January 2024.

The sunset review is a requirement under U.S. law for the ITC and U.S. Department of Commerce to review existing antidumping and countervailing duty orders every five years to determine if they are still needed.


Rate tables

AR4 - Amended Final Rates

Company

CVD - AR4

AD - AR4
(Amended)
Total - AR4
(Amended)
Canfor 1.36% 5.25% 6.61%
West Fraser 2.19% 7.06% 9.25%
JD Irving 1.72% 6.26% 7.98%
All Others 1.79% 6.26% 8.05%

The above table shows final amended rates for the fourth Administrative Review released by the U.S. Department of Commerce.  These amended cash deposit rates took effect on August 1, 2023, the original Federal Register publication date of the final results.

AR3 - Final Rates

Company CVD - AR3 AD - AR3 Total - AR3
Canfor .95% 4.92% 5.87%
West Fraser 3.62% 4.63% 8.25%
Resolute 10.1% 4.76% 14.86%
JD Irving 2.41% 11.59% 14.0%
All Others 3.83% 4.76% 8.59%

AR2 - Amended Final Rates

Company
 

CVD - AR2
(Amended)

AD - AR2
 

Total - AR2
(Amended)

Canfor 2.42% 17.12% 19.54%
West Fraser 5.08% 6.06% 11.14%
Resolute 18.07% 11.59% 29.66%
JD Irving 3.46% 11.59% 15.05%
All Others 6.32% 11.59% 17.91%

AR1 - Table 2:  Cash Deposit Rate

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%

AR1 - Table 1:  Assessment Rate

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%

Contact information

Economics and Trade Branch

Mailing
PO Box 9514, Stn Prov Govt, Victoria, BC, V8V 1T7