Canada denounces U.S. Department of Commerce softwood lumber determination

International Trade Minister Jim Peterson denounced a United States Department of Commerce (DOC) decision to only slightly reduce softwood lumber countervailing duties following its annual administrative reviews. "I am extremely disappointed by this decision. The United States used a cross-border benchmark for B.C. that has clearly been found illegal by the WTO and the NAFTA, said Minister Peterson. ТWe continue to maintain that Canadian softwood lumber is neither subsidized nor dumped, and that it does not threaten to injure the U.S. industry. The duties should be dropped."

The reviews determined a new countervailing duty rate of 17.18% (slightly down from the original 18.79%) and a new "all others" anti-dumping duty rate of 4.03% (down from the original 8.43%), for a total of 21.21%. Under the U.S. duty assessment system, countervailing and anti-dumping cash deposits for shipments made during previous years are assessed and finalized through annual administrative reviews. The new rates issued today establish the assessment rate for shipments made during the period under review. The period of review for the countervailing duty order was May 22, 2002, to March 31, 2003.

The period of review of the anti-dumping duty order was May 22, 2002, to April 30, 2003. Administrative review results also become the new cash deposit rates for future shipments of softwood lumber products to the U.S., regardless of any ongoing challenges. The new rates will take effect once the DOC issues instructions to U.S. Customs, which should happen within the next two weeks. Canada will be closely examining the administrative review results and consulting with the provinces and industry regarding next steps.