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U.S. imposes countervailing duty on Canadian softwood lumber

April 27, 2017

The U.S. Commerce Department announced on Monday that it would begin imposing tariffs on softwood lumber from Canada which, it claims, is produced with the help of subsidies from governments in Canada.

The Department calculated preliminary subsidy rates for five mandatory respondents at rates from 3.02 percent to 24.12 percent and established a preliminary subsidy rate of 19.88 percent for all other producers/exporters in Canada.

As a result of the preliminary affirmative determination, the Commerce Department will instruct U.S. Customs and Border Protection (CBP) to require cash deposits based on preliminary rates.

The Department also preliminarily found that "critical circumstances" exist with respect to one mandatory respondent and companies subject to the "all others rate". Consequently, Commerce will instruct CBP to impose provisional measures retroactively on entries of softwood lumber from Canada, effective 90 days prior to publication of the preliminary determination in the Federal Register, for the affected exporters. This determination was published on April 26.

The Government of Canada issued a statement saying that it "will vigorously defend the interests of the Canadian softwood lumber industry, including through litigation. In ruling after ruling since 1983, international tribunals have disproved the unfounded subsidy and injury allegations from the U.S. industry."

Link: U.S. Department of Commerce Preliminarily Determination

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