Canada has 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).

In a statement, Mary Ng, Minister of Export Promotion, International Trade and Economic Development, said that the duties impacted the 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 two 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.”

On November 30, 2023, the USITC voted to maintain duty orders on Canadian softwood lumber. The results of the USITC’s sunset review were published in the United States’ Federal Register in late 2023.

As part of the 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.

Since the most recent U.S. administrative review, U.S. softwood lumber duties have subjected most Canadian softwood lumber exports to the new combined duty rate of 7.99%.

Read a timeline of key events in the U.S.-Canada softwood lumber dispute here.

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