Softwood Lumber Trade Dispute

Recent Developments

January 2, 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.

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.  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.

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’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. 

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

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.

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.  

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