Appeals, Challenges and Decisions

Last updated on October 6, 2023

The federal government, provinces and industry have launched challenges related to the lumber case.  The World Trade Organization (WTO) challenges consider whether the U.S. has breached their obligations under the WTO and the North American Free Trade Agreement (NAFTA) challenges consider whether the U.S. has applied their own trade laws correctly.

On this page:

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.

Lumber V Initial Investigation

 

Antidumping investigation (AD)

Information related to the antidumping investigation (AD):

  • April 9, 2019, Canada filed an appeal of the panel decision on zeroing.  The appeal will not be heard prior to the dissolution of the Appellate Body.
 

Countervailing duty investigation (CVD)

Information related to the countervailing duty investigation (CVD):

  • August 24, 2020, WTO dispute-resolution panel found the US Department of Commerce’s determination of countervailing duties inconsistent with WTO agreement
    • Panel agreed with Canada’s argument that DOC made errors in 2017 determining benchmark timber prices to determine if Canadian producers paid adequate stumpage
    • The US has appealed this decision; however, the U.S. has blocked the appointment of new Appellate Body members, creating an impasse in the appeals process
  • February 26-28, 2019, CVD panel first hearing
 

General Information

  • April 9, 2018, WTO panel established
  • November 28, 2017, the Government of Canada formally requested World Trade Organization (WTO) consultations on U.S. duties on Canadian softwood lumber.

 

NAFTA (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 below applies to the Lumber V initial investigation only.

 

Information related to the International Trade Commission (ITC) injury case

International Trade Commission (ITC) injury case

May 22, 2020: NAFTA panel issued unanimous final ruling in the appeal of the U.S. ITC determination that Canadian lumber industry has harmed the U.S. industry,

  • Ruling is final and this avenue of appeal is now finished

January 21, 2020: Canada response

December 19, 2019: ITC remand report submitted

September 4, 2019: Panel issued interim decision

May 7, 2019: Panel hearing

Jan. 19, 2018: Canada filed notice of Chapter 19 appeal for ITC’s material injury

 

Information related to the antidumping investigation

October 5, 2023:  the North American Free Trade Agreement (NAFTA) Chapter 19 panel ruling on the United States Department of Commerce's final dumping determination has been issued.

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.

Canada will appoint 3 of the 5 panel members.

 

Information related to the countervailing duty investigation

August 24, 2021: The US has appointed 3 of the 5 panel members (Canada appointed the remaining two), with all parties in agreement to the members as of August 24, 2021.

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.  

 

CUSMA (Canada, US, Mexico Agreement)

The Canada US Mexico Agreement (CUSMA), Chapter 10, provides for binational panels to review final determinations made in CVD and AD cases.  CUSMA replaced NAFTA and appeals after the investigation are administered through CUSMA.

Lumber V Administrative Review 1

 

General Information

December 10, 2020 - Canada has filed a request for CVD and AD panel reviews of the AR1 final determination.  Panels are not yet composed.