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ARTICLE · 29 JUNE 2017

Softwood Lumber: Hard Facts

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On April 24, 2017, the American Department of Commerce imposed preliminary countervailing duties on softwood lumber from Canada.

CanadaInternational Law
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On April 24, 2017, the American Department of Commerce imposed preliminary countervailing duties on softwood lumber from Canada. Press reports in Canada have complained that this was due to protectionist sentiments in the United States, even blaming the President for this action. This article will attempt to provide a clear explanation of what has transpired, and what the future may hold.

Did President Trump do this?

No. Despite press reports claiming that the President has taken credit for this action, the countervailing duty investigation was undertaken under anti-subsidy laws that are permitted by the World Trade Organization1. Subject to certain rules and limitations, where producers in a country are being injured by low-priced goods from another country that are made possible by the provision of subsidies in the country of export, those producers may initiate proceedings to have countervailing duties put in place. These duties are intended to offset (or

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