The panel noted that it was “particularly troubled by the extensive lack of analysis undertaken by the commission of the factors applicable to a determination of whether there is a threat of material injury to the domestic softwood lumber industry.”
Earlier this summer, two NAFTA panels in separate rulings found that the current countervailing and anti-dumping duties on Canadian imports are based on invalid calculations showing that Canadian producers are subsidized.
“The ITC now has an opportunity to objectively review the facts and make the right decision — that allegations of Canadian subsidies have no merit, and that Canadian trade practices offer no threat of injury to the U.S. industry,” said Rayburn.
If the ITC now concludes that there is no threat of injury, the lumber tariffs would be eliminated.
However, if the commission upholds its original ruling, NAFTA would then be left with three choices: affirm the ITC decision, order the ITC to reverse its ruling or once again compel the ITC to reconsider the case.
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