Softwood Lumber Trade Dispute

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.

On this page:

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

April 27, 2022: AR3 - Extended final results

The U.S. Department of Commerce extended its final results of the Third Administrative Review (AR3) in the countervailing duty (CVD) investigation of imports of certain softwood lumber products from Canada. Final results are now expected August 3, 2022.


March 9, 2022: AR4 - Initiation

The U.S. Department of Commerce initiated the Fourth Administrative Review (AR4) 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 is 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 31, 2022: AR3 - Preliminary Determination

The U.S Department of Commerce released its preliminary determination for the Third Administrative Review (AR3) in antidumping duty (AD) and countervailing duty (CVD) investigations of imports of certain softwood lumber products from Canada.

These rates (see table below) will only be applicable to companies covered by the Third Administrative Review and will not come into effect until the AR3 final determination later this year, see U.S. Department of Commerce Notice for AD (PDF, 95KB) and CVD (PDF, 814KB) investigations.


January 10, 2022: AR2 - Amended final results of the AR2 CVD case published in the Federal Register


January 6, 2022: AR2 - Adjustment to CVD final determination rates

The U.S. Department of Commerce issued a Memo amending its notice of final results for the Second Administrative Review (AR2) in the countervailing duty (CVD) investigation of imports of certain softwood lumber products from Canada. These amended results will increase the "All Others" CVD rate by 0.01% (resulting in a rate of 6.32%). The amended cash deposit rates will become effective on the date of publication (January 10, 2022) of these amended final results of review in the Federal Register.


November 24, 2021: AR2 - Final Determination

The U.S. Department of Commerce released its final determination for the Second Administrative Review (AR2) in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of certain softwood lumber products from Canada.


Rate tables

AR3 - Preliminary Rates
*Not in effect until AR3 final - for information only
Company CVD - AR3 AD - AR3 Total - AR3
Canfor 1.83 4.92 6.75
West Fraser 8.46 4.63 13.09
Resolute 15.48 4.76 20.24
JD Irving 2.33 4.76 7.09
All Others 6.88 4.76 11.64

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%

The above table shows final amended rates for the 2nd Administrative Review released by the US Department of Commerce.  These rates took effect January 10, 2022 as published in the Federal Register.

AR2 - Preliminary Rates

Company CVD - AR2 AD - AR2 Total - AR2
Canfor 2.42% 18.62% 21.04%
West Fraser 4.8% 6.58% 11.38%
Resolute 18.17% 12.05% 30.22%
JD Irving 3.77% 12.05% 15.82%
All Others 6.27% 12.05% 18.32%

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%