Canada Sees Light at the End of the Tunnel as US Softwood Lumber Policy Undergoes Review

Canada Sees Light at the End of the Tunnel as US Softwood Lumber Policy Undergoes Review

  • Canada welcomes trade panel’s call for U.S. Softwood Lumber Policy review.
  • Dispute centers on alleged Canadian lumber subsidies and U.S. tariffs.
  • U.S. Commerce Department yet to comment on the ruling.

Oct.5: Canada welcomes a recent trade dispute panel ruling that calls for a review of the U.S. Softwood Lumber Policy,, which includes imposing duties on most lumber products imported from Canada. This long-standing dispute traces its roots back to differences in how Canada’s timber sector operates, and it persisted even after a quota agreement expired in 2015. U.S. producers argue that Canada provides unfair subsidies to its lumber sector.

The crux of the matter lies in the U.S. tariffs, which are based on the belief that Canadian timber, sourced from federal and provincial lands with low government-set stumpage fees, amounts to an unfair subsidy. In contrast, the majority of U.S. timber comes from private land and is priced at market rates.

In response to this ongoing trade dispute, the recent ruling directs the U.S. to reevaluate how it handles export taxes. Notably, in July, the U.S. Commerce Department imposed a duty rate of 7.99% on lumber products from Canada.

Trade Minister Mary Ng expressed Canada’s satisfaction with the NAFTA (North American Free Trade Agreement) dispute panel’s decision, noting that it finds certain aspects of the U.S. dumping determination inconsistent with U.S. law. It’s worth noting that NAFTA was replaced by the United States-Mexico-Canada Agreement (USMCA) in 2020.

As of now, the U.S. Commerce Department has not yet provided a response to Reuters’ request for comment on this matter.

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Ahmed Hassan

Ahmed Hassan, a distinguished Ph.D. holder in Political Science from Stanford University, is your go-to expert for in-depth political analysis. His well-researched articles provide valuable insights into the complex world of politics. Ahmed's commitment to balanced reporting and informed commentary ensures you're always up-to-date with the latest developments in the political landscape.

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