International Trade Minister Mary Ng says Canada is formally initiating a challenge of “unwarranted and unfair” US duties on Canadian softwood lumber.
The Canadian government filed notice of the challenge today under the US-Mexico-Canada trade agreement’s dispute resolution system.
Ng says in a statement that the duties harm Canadian businesses and workers but also serve as a tax on U.S. consumers already dealing with inflation and supply-chain issues.
The U.S. cut its anti-dumping and countervailing duty rate in half earlier this month to 8.59 percent from 17.61 percent, but Ng signalled that Canada would still fight the measures.
The crux of the US argument is that the stumpage fees provinces charge for timber harvested from Crown land are akin to subsidies, since US producers must instead pay market rates.
Ng says that Canada is willing to work towards a negotiated solution in the long-running dispute.
