Good News

International Trade Minister Pierre Pettigrew welcomed today's NAFTA panel decision, which states that the United States' application of anti-dumping duties on Canadian softwood lumber was inconsistent with U.S. domestic law. The NAFTA panel has ordered the U.S. Department of Commerce to issue a new determination within 60 days.

"The panel told the U.S. to correct its flawed determination," said Minister Pettigrew. "Canada will continue to pursue all avenues to defend its softwood lumber industry, including its other WTO and NAFTA challenges."

The NAFTA anti-dumping challenge has been led by the Canadian softwood lumber industry and deals with company-specific issues, including pricing practices.

In May 2002, the United States imposed both a countervailing duty and an anti-dumping duty on Canada's softwood lumber exports. Canada is currently fighting both through the World Trade Organization (WTO) and NAFTA. On May 27, 2003, Minister Pettigrew welcomed the news that a WTO panel's interim decision supported Canada's claim that Canadian provincial stumpage programs are not subsidies. A final decision in that case is expected to be released on July 22, 2003. The results of other legal challenges are expected later this summer and fall. The Government of Canada is working closely with the provinces and industry on these challenges.

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