RE:Canada challenging US duties thru new NAFTA..The federal government is launching a challenge under the new NAFTA agreement against U.S. softwood lumber duties, International trade Minister Mary Ng has announced. Minister Mary Ng said the government filed notice of the challenge under Chapter 10 of the Canada, U.S. Mexico Agreement, (CUSMA).
"Canada reaffirms its call for the United States to stop imposing unwarranted duties on Canadian softwood lumber products," Ng said in a statement.
The U.S. Department of Commerce announced in November that it would be imposing an average duty of 17.9 per cent on softwood lumber imported from Canada; twice the previous 8.99 per cent rate.
This is the second time Canada has invoked Chapter 10 of CUSMA. Last year the government filed a similar challenge against the 8.99 per cent duty.
Chapter 10 allows for one of the three countries to request a binational trade panel to rule on a trade dispute, rather than turning to international bodies like the World Trade Organization (WTO).
Canada won a WTO case on softwood lumber In August 2020, but the U.S. appealed — and because the Americans continue to block appointments to the WTO's appellate body, that case was effectively stalled.