Canada challenges U.S. decision to maintain softwood lumber duties

“Today, Canada filed a notice of intent to challenge the United States International Trade Commission’s (USITC’s) decision to maintain duties on Canadian softwood lumber products, under Chapter 10 of the Canada-United States-Mexico Agreement (CUSMA).

“Canada is disappointed that the United States continues to impose unwarranted and unjust duties on Canadian softwood lumber products. These duties impact our innovative Canadian softwood industry. And with the significant current challenges in housing supply and affordability, these duties also harm U.S. consumers and businesses that need Canadian lumber.

“At every opportunity, we continue to raise the issue of unjustified U.S. duties on Canadian softwood lumber and underline the need to find an acceptable resolution of this dispute that works for our 2 countries and their businesses.

“Canada remains ready and willing to discuss a resolution that provides the stability and predictability the sector needs to ensure its continued growth and success. We will always defend the Canadian softwood lumber industry and the workers and communities it supports.”

Quick facts

The United States conducts sunset reviews of countervailing duty and anti-dumping duty orders on a 5-year cycle.
The purpose of the sunset reviews is to determine whether revocation of the U.S. duty orders would be likely to lead to the continuation or recurrence of dumping, subsidization and injury to the U.S. industry. The purpose of the latest sunset review was to determine whether the U.S. would continue applying duties against Canadian softwood lumber products.
On November 30, 2023, as part of its sunset review process, the USITC voted to maintain duty orders on Canadian softwood lumber, having determined that material injury is likely to recur should the orders be revoked.
The results of the USITC’s sunset review were published in the United States’ Federal Register on December 28, 2023.
Canada’s decision to pursue its sunset review challenge under Chapter 10 of CUSMA was made in consultation with affected provinces, stakeholders and industry leaders.
As part of the sunset review challenge under CUSMA, a binational panel will be established and tasked with determining whether the decision to maintain duties on Canadian softwood lumber products was reached in a manner consistent with U.S. law.