Statement by Minister Ng on Canada’s challenge of U.S. duties on Canadian softwood lumber

The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, today issued the following statement regarding Canada’s request for a panel review under Chapter 10 of the Canada-United States-Mexico Agreement regarding U.S. countervailing duties on imports of Canadian softwood lumber:

“On November 24, 2020, the U.S. Department of Commerce established, through its first administrative review process, a 7.42% countervailing duty rate for most Canadian producers of softwood lumber. 

“Canada firmly believes that any duties imposed on Canadian exports of softwood lumber to the United States are unwarranted and unfair.

“These duties have caused unjustified harm for Canadian workers and businesses, and are hampering economic recovery on both sides of the border—especially when our people are being affected by the health and economic impacts of COVID-19.

“Our government will continue to vigorously defend its forestry sector and the thousands of hard-working Canadians it employs.

“Canada will consider all of its legal options with respect to U.S. duties on softwood lumber, including the possibility of bringing this challenge to the World Trade Organization for review under its dispute settlement mechanism.”

Quick facts

• Most U.S. imports of Canadian softwood lumber are now subject to new duty rates: a 7.42% countervailing duty rate and a 1.57% anti-dumping duty rate (8.99% combined); certain companies also received company-specific rates.
• The previous combined rate to which most Canadian companies were subject when exporting certain softwood lumber products to the United States was 20.23%.

Related products

• Statement by Minister Ng about U.S. duties on Canadian softwood lumber

Associated links

• Frequently asked questions - Softwood lumber