NAFTA Finds In Canada's Favour Over US Anti-Dumping Duties

by Mike Godfrey, for LawAndTax-News.com, Washington

21 July 2003

Canada last week welcomed a North American Free Trade Agreement (NAFTA) panel's decision with regard to the country's softwood lumber tax dispute with the United States.

The US government has argued that some Canadian provinces offer softwood lumber exporters unfair subsidies by charging them low stumpage fees on land owned by the province. In response to this perceived threat to the US market, anti-dumping measures and duties totalling around 27% are imposed on imports of Canadian softwood lumber to the United States.

However, in a statement issued last week, Canadian International Trade Minister, Pierre Pettigrew revealed that the NAFTA panel had to found the anti-dumping duties to be in contravention of US domestic laws.

'The panel told the US to correct its flawed determination,' the Minister announced, adding that: 'Canada will continue to pursue all avenues to defend its softwood lumber industry.'

The United States has reportedly been given 60 days to rectify the situation.

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