Canada files for extensive complaint against the US at the WTO due to lumber duties

Canada has filed a WTO complaint over US antidumping and countervailing duty proceedings.

In its complaint Canada says the US procedures are against international trade rules in six different aspects, including WTO’s AntiDumping Agreement, the Agreement on Subsidies and Countervailing Measures, the General Agreement on Tariffs and Trade and the Understanding on Rules and Procedures Governing the Settlement of Disputes.

The US Department of Commerce under the Trump administration launched more than eighty anti-dumping and countervailing trade investigations in 2017, almost 50% more than in 2016.

Canada’s complaint cites almost 200 examples dating back to 1996, with many involving countries other than Canada, including China, India and Brazil.

The US has 60 days to try to settle the complaint, or Canada could ask the WTO to adjudicate. The process could take years. The US has lost cases in the WTO before over its punitive duties system.

The Canadian Foreign Minister said the legal action was part of a broader litigation to defend forestry jobs in Canada.

In November 2017 Canada filed a complaint with the WTO regarding US antidumping and countervailing duties on Canadian sawn softwood. The US imposed preliminary countervailing duties on Canadian newsprint in January.

The filing comes shortly before the next round of negotiations between the US, Canada and Mexico for the North American Free Trade Agreement (NAFTA). The complaint might help Canada protect itself if the US withdraws from NAFTA. Canada’s complaint is available on the WTO website.