Canada appeals WTO lumber duties ruling

Canadian foreign minister says softwood lumber duties are “unwarranted.”

BY HBSDealer Staff

Canada has appealed a World Trade Organization (WTO) panel ruling regarding the United States use of “zeroing” for calculating anti-dumping tariffs on lumber.

This past April Canada lost a case before the WTO, which ruled that the use of zeroing was allowed in the lumber case between the two nations. But Canadian Foreign Minister Chrystia Freeland has vowed to fight the decision.

“We firmly believe that the U.S. duties on Canadian softwood lumber are unfair and unwarranted,” Freeland said in a statement. “That is why we are challenging these duties at the WTO and under NAFTA.”

Zeroing calculates tariffs based on whether the domestic price of a product exceeds the U.S. import price after adjustments are made for transportation and handling costs.

In prior decisions, the WTO has ruled against the zeroing practice.


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