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U.S. Appeal Expected to Prolong Resolution of Dispute Over Canadian Lumber Duties

As required under U.S. and international trade laws, the U.S. International Trade Commission (ITC) voted last month to comply with the NAFTA verdict, but indicated that it did not agree with the decision.

The ITC’s response in compliance with the NAFTA ruling paved the way for the removal of the 27.2% countervailing and anti-dumping duties on Canadian softwood lumber shipments that have been in place since May of 2002.

The U.S. appeal, which will take place before an extraordinary challenge committee composed of one American, one Canadian and one other judge from either country to be determined by a drawing, is not expected to be formally filed until next month.

“This is nothing more than a delaying tactic designed to keep the duties in effect as long as possible,” said NAHB President Bobby Rayburn. “U.S. lumber producers know their case is very weak. However, they understand that as long as the case drags on, the tariffs will remain in effect and continue to pad their bottom line at the expense of U.S. consumers.”

An extraordinary challenge is the last legal avenue available under a NAFTA panel ruling, which carries the weight of law in Canada, the U.S. and Mexico.

The U.S. has never won an extraordinary challenge under NAFTA. A decision on the case is expected in March of 2005. A loss would force the U.S. government to rescind the levies and return more than $2.6 billion in duties collected to date.

For more information, e-mail Michael Strauss or call him at 800-368-5242 x8252.

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