Skip to Content

WTO Rules In Favour Of Canada In Softwood Dispute

Dryden, ON, Canada / CKDR
Mike Ebbeling
Aug 25, 2020 | 11:13 AM


WTO Rules In Favour Of Canada In Softwood Dispute

A victory of sorts for the Canadian forestry industry in the long standing softwood lumber dispute with the United States.

The World Trade Organization has unanimously ruled that U.S. countervailing duties introduced in 2017 against Canadian softwood lumber are inconsistent with the WTO obligations of the United States.

The panel agreed with Canada’s argument the U.S. Department of Commerce made a number of errors in determining the benchmark Canadian timber prices it used to determine whether producers north of the border were paying adequate stumpage fees to the provinces.

Federal Minister of Small Business, Export Promotion and International Trade Mary Ng says U.S. duties on Canadian softwood lumber are completely unwarranted and unfair and the decision confirms our country isn’t subsidizing the softwood lumber industry.

The U.S. has 60 days to appeal but the decision likely won’t see the light of day as the appeal body needs a quorum of three to make a decision.

Only one person currently sits on the board and the United States has blocked attempts appoint new members.

Here is official statement from Minister Ng:

“The Government of Canada welcomes the unanimous WTO panel ruling that U.S. countervailing duties against Canadian softwood lumber are inconsistent with the WTO obligations of the United States.

“Canada’s forestry sector supports hundreds of thousands of good, middle-class jobs for hard-working Canadians in communities across our country, and we will always stand up for them.

“Canada remains unequivocal: U.S. duties on Canadian softwood lumber are completely unwarranted and unfair. This decision confirms that. Canada does not subsidize its softwood lumber industry, and that is why we have challenged these U.S. duties at the WTO and under the former North American Free Trade Agreement.

“Canada expects the United States to comply with its WTO obligations. U.S. duties on Canadian softwood lumber must not persist. They have caused unjustified harm to Canadian industry and U.S. consumers alike. U.S. homebuilders rely on Canadian lumber, and the current record-high lumber prices are hurting the economic recovery in both countries. Right now, during these difficult times, businesses and people in both our countries need support, not the burden of additional taxes.

“We will continue to work closely with the provinces and our softwood lumber industry to defend the forestry sector and its workers.”