WTO Announces Panels to Review U.S. Softwood Lumber Duties

SEATTLE (Scrap Monster): The World Trade Organization (WTO) has announced that its Dispute Settlement Body (DSB) has agreed to formulate two panels to review complaints filed by Canada on duties imposed by the U.S. administration on softwood lumber imports. The panels will examine the anti-dumping and countervailing duties imposed on Canadian softwood lumber, WTO noted.

Earlier towards end-March this year, the Canadian government had requested WTO to set up an expert panel to examine the dispute on lumber duties, following the failure of consultations with the US administration in January 2018. The government had also called for creation of another panel to look into the differential pricing methodology applied by the U.S. in determining anti-dumping duties.

Meantime, the US has objected to the Canadian requests, stating that the duties were fully consistent with its obligations under the WTO agreements. Also, it noted that the request by Canadian officials included claims against the measures that don’t even exist. Furthermore, the US questioned Canada’s categorization of the matter as urgent, since it is already a long time since the final determination on antidumping investigations were made in November 2017. On the other hand, Canada noted that duties have caused considerable hardships on softwood lumber producers and dependent communities across the country.

According to media reports, the EU, Japan, Korea, China, the Russian Federation, Brazil, Kazakhstan and Vietnam reserved their rights to participate in the panel proceedings. Meantime, Canada noted that panel composition will be dealt with in due course. Also, it hinted at dropping the international trade case, in case it is able to reach a favorable settlement with the US on softwood lumber dispute.