WTO RELEASES INTERIM REPORT ON SOFTWOOD LUMBER
International Trade Minister Jim Peterson is pleased with reports that a World Trade Organization (WTO) panel has found that the U.S. International Trade Commission (ITC) did not follow international trade rules when it determined that Canadian softwood lumber exports threaten to injure the U.S. industry.
“We have consistently maintained that countervailing and anti-dumping duties imposed by the U.S. on Canadian softwood lumber exports violate international trade rules,” said Minister Peterson. “We are pleased with today’s interim report.”
On May 22, 2002, the ITC determined that the U.S. softwood lumber industry was “threatened” with material injury by reason of alleged subsidized and dumped imports of softwood lumber from Canada.
Canada challenged the ITC’s threat of injury determination before the WTO and under the North American Free Trade Agreement (NAFTA). On September 5, a NAFTA panel ordered the ITC to issue a new determination that is consistent with U.S. law. On December 16, the ITC issued a new determination reaffirming its original finding of threat of injury. Canadian parties will ask that this new determination be reviewed by the NAFTA panel.
The Government of Canada will continue to work with the provinces and industry on our two-track strategy of litigation before NAFTA and WTO panels and negotiations to find a lasting resolution to this dispute. This WTO panel finding will be an important element in our ongoing consideration of the U.S. proposal for a settlement.
