The U.S. government regrettably prolonged the softwood lumber dispute by formally requesting that a NAFTA “extraordinary challenge committee” (ECC) review the NAFTA panel decision on threat of injury. The panel, including three Americans and two Canadians, have unanimously agreed there was no evidence to support the U.S. International Trade Commission’s (ITC) determination that Canadian imports threaten injury to the U.S. lumber industry.
U.S. attempts last ditch appeal in softwood lumber dispute
The U.S. government regrettably prolonged the softwood lumber dispute by formally requesting that a NAFTA “extraordinary challenge committee” (ECC) review the NAFTA panel decision on threat of injury. The panel, including three Americans and two Canadians, have unanimously agreed there was no evidence to support the U.S. International Trade Commission’s (ITC) determination that Canadian imports threaten injury to the U.S. lumber industry.
The U.S. request for an ECC will only extend the legal case and delay for several months the inevitable victory Canada has achieved fairly through the NAFTA process. The Canadian Lumber Trade Alliance (CLTA) believes the U.S. government is caving into pressure by approximately 50% of U.S. lumber producers, represented by the U.S. Coalition for Fair Lumber Imports, in a last ditch attempt to have an ECC reverse the panel’s decision.
This is the same strategy that the U.S. used in the last softwood lumber dispute in 1994, but to no avail. The ECC failed, and the U.S. was forced to revoke the illegal countervailing duty order, which led to the refund of all the Canadian producers’ duties. The U.S. simply refuses to admit it was wrong to impose the 27% duties on softwood lumber imports, which now have been proven illegal not only by the NAFTA panel, but by a separate WTO panel as well.
Instead of accepting its mistake and revoking the illegal duties, the U.S. seems intent on finding a scapegoat, and the NAFTA panel is a convenient target. The CLTA will not be intimidated by the filing of a frivolous ECC and is disappointed the U.S. has shown such little respect for the NAFTA institutions, which were formed to improve trade relations between Canada and the U.S., not create a lengthy legal process with no resolution. The CLTA will work closely with the Government of Canada to vigorously defend Canada’s softwood lumber producers through the ECC process and is confident Canada will emerge victorious once again. No panel decision has ever been overturned by an ECC.
The Canadian Lumber Trade Alliance worked together to present a joint submission to the NAFTA panel. The Canadian Lumber Trade Alliance includes: The BC Lumber Trade Council, Alberta Softwood Lumber Trade Council, the Ontario Forest Industries Association, the Ontario Lumber Manufacturers Association, Free Trade Lumber Council, and the Québec Forest Industry Council.
