The United States International Trade Commission has found the importing of Canadian softwood lumber has hurt the U.S. market.
The commission made the decision in a unanimous vote on Dec. 7.
This means Canadian producers will pay antidumping and countervailing duties on any softwood exported to the U.S.
The U.S. and Canada have been unable to come to an agreement on the trade of softwood lumber after a former, nine-year agreement expired in 2015.
American producers allege that the Canadian industry is subsidized by the provincial and federal governments, while in the U.S., prices are set by the market – a situation the U.S. contends is unfair. It has long argued Canadian lumber should be subject to a tariff to offset the subsidy.
In early November, the U.S. Department of Commerce found Canadian exporters have sold softwood lumber to the U.S. at 3.2 per cent to 8.89 per cent less than fair value. It also found Canada is providing unfair subsidies to Canadian softwood producers at rates from 3.34 to 18.19 per cent.
The department determined most Canadian producers will pay an average, combined antidumping/countervailing duty of 20.83 per cent.
A full report from the U.S. International Trade Commission is slated to be released on Jan. 12, 2018.