Statement by Minister Ng on U.S. final duty rates on Canadian softwood lumber

From: Global Affairs Canada

The Honourable Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, today issued the following statement regarding the final results of the second administrative reviews by the U.S. Department of Commerce of its anti-dumping and countervailing duty orders in relation to certain softwood lumber products from Canada:

“Canada’s softwood lumber industry is an economic anchor for communities across the country and a key component of Canada’s forestry sector, which contributed more than $25 billion to the country’s GDP in 2020 and employed nearly 185,000 workers. The United States has long relied on Canadian lumber products to meet its domestic needs for high-quality building materials.

“Canada is extremely disappointed that the United States has decided to increase the unfair duties it is imposing on Canadian softwood lumber from most producers to 17.9%. Canada calls on the United States to cease imposing these unwarranted duties on Canadian softwood lumber products.

“These unjustified duties harm Canadian communities, businesses, and workers. They are also a tax on U.S. consumers, raising the costs of housing, renovations, and rentals at a time when housing affordability is already a significant concern for many.

“The Government of Canada will continue to vigorously defend our softwood lumber industry and the workers and communities it supports, including through litigation under CUSMA’s Chapter 10, as well as NAFTA’s Chapter 19 and at the WTO. At every step of the way, rulings have found Canada to be a fair trading partner.

“Canada has always been willing to explore ideas that allow for a return to predictable cross-border trade in softwood lumber and remains confident that a negotiated solution to this long-standing trade issue is in the best interest of workers in both our countries.”

Quick facts

  • On November 24, 2021, the U.S. Department of Commerce issued the final results of the second administrative reviews of its anti-dumping and countervailing duty orders regarding certain softwood lumber products from Canada.
  • Going forward, the new combined “all others” rate that will apply to exports from companies that are subject to the second administrative reviews is 17.9%. The current “all others” rate for most companies is 8.99%.
  • Following completion of any legal challenges under the Canada-United States-Mexico Agreement’s (CUSMA) Chapter 10 or in U.S. courts, these new anti-dumping and countervailing duty rates will apply retroactively to softwood lumber exports to the United States from companies that were subject to the second administrative reviews.
  • The U.S. Department of Commerce conducts an annual review of anti-dumping and countervailing duty orders. The annual review process is similar to the process used for initial investigations but applies only to companies that are subject to review.

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