A request for a North American Free Trade Agreement (NAFTA) panel review was filed on behalf of the Government of Canada, provincial governments, industry associations and producers to contest the U.S. Department of Commerce’s final countervailing duty determination regarding certain softwood lumber products from Canada.
The U.S. Department announced on November 2, 2017 that it will impose final countervailing duty on imports of softwood lumber from Canada.
NAFTA provides a dispute settlement mechanism involving trade remedy determinations, such as the imposition of antidumping and countervailing duties, issued by the Government of the United States, the Government of Canada, and the Government of Mexico.
Following the request for panel review, the Binational Panel will be composed to review whether countervailing duties are applied in accordance with the laws of the United States.
A Canadian government official told BNN last week that Canada could decide to take its case to the World Trade Organization (WTO) as well, in addition to the NAFTA challenge.