Softwood Dispute Persists

The Commerce Department has announced its final determination of a combined countervailing and antidumping duty rate of 7.99 percent on imported softwood lumber from Canada, drawing immediate criticism from the Canadian government over the years-long dispute.

The fourth annual review covers lumber imported in calendar year 2021.

Canadian International Trade Minister Mary Ng issued a statement expressing her disappointment that the “United States continues to impose unwarranted and unfair duties on Canadian softwood lumber. The only fair outcome would be for the United States to cease applying these baseless duties.”

The duties harm both Canadian and US businesses and undermine the “highly integrated supply chains and economies,” she commented, adding that the duties have instead led to a spike in imports from offshore suppliers to fill the gap in demand.

“An immediate negotiated solution to this long-standing trade issue is in the best interests of both our countries,” the minister said. “Canada is disappointed that the United States is not meaningfully engaging in discussions on a return to predictable cross-border trade in softwood lumber. At every opportunity, I continue to reiterate this message to my US counterparts, US administration officials and Congressional representatives on both sides of the aisle.”

US Lumber Responds

The US lumber industry established its right to the imposition of antidumping and countervailing duties in the face of unfair competition from Canada in 2017, and the industry continues to vigorously defend the existence and enforcement of those duties in all appropriate fora, according to US Lumber Coalition.

The coalition said in a statement it remains open to a new US–Canada softwood lumber trade agreement. The United States and Canada so far have not been able to agree on a new softwood lumber deal. “Until this happens, the US Lumber Coalition fully supports the continued strong enforcement of the US trade laws to address Canada's unfair softwood lumber trade practices,” according to the statement.

“Failure to fully enforce the trade laws would only undermine long-term confidence in expanding U.S. sawmilling capacity and jobs in the American softwood lumber industry, which could cause significant supply disruptions for the US market,” said Coalition Chairman and the CEO of Stimson Lumber Andrew Miller.

Russia Trade Persists

The European Union banned the import of Russian timber in July 2022, and while increased tariffs have reduced plywood imports, the US directly imported $1. billion worth from Russia in 2022.

Plywood remains one of the largest commodities other than gas and oil coming directly from Russia and its ally Belarus into the U.S., accounting for roughly half of all Russian consumer goods landing on American shores from November 2022 to January, according to an analysis of Russian export and U.S. import records by EarthSight.