Softwood Lumber Agreement 2020

In April 2006, the United States and Canada announced that they had reached an interim agreement to end the dispute. The announced Softwood Lumber Agreement (SLA) came into full force in October 2006. The terms stipulated that the period of this agreement would last between seven and nine years. The two countries agreed to a two-year extension in 2012. [7] Under the interim conditions, the United States would lift countervailing and anti-dumping duties if timber prices remain above a specified range. A mixed system of export taxes and quotas on Canadian timber imports would be introduced below the specified range. On the Canadian side, the nation has agreed to enforce the rules, for example in the form of taxes on timber exports to the United States. In particular, Canadian provincial governments have been encouraged to change their pricing systems. Such changes would allow for an unsubsidized system. Under the agreement, more than $5 billion would be repaid in recovered customs duties. THE ALS establishes a dispute resolution mechanism based on the London Court of International Arbitration (LCIA), a non-governmental institution.

Both countries can initiate dispute resolution procedures on issues arising from or implementing the LAC. The hearings will be open to the public, as well as briefs and other documents. [8] The agreement stipulates that hearings must be held either in the United States or in Canada (the location is chosen by the Court of Arbitration). The ALS also provides that the decisions of an arbitration panel are binding on both parties. [9] On November 24, 2020, the U.S. Department of Commerce issued its final anti-dumping (AD) AR1 and countervailing duty (CVD) investigations into imports of certain conifer wood products from Canada. Canadian ownership of U.S. sawmills continues to increase, and the number is now increasing [when?] to 40 mills, up from just two a decade earlier. West Fraser now has more sawmills in the southern United States (16) than in Canada (13), Canfor Corp. has 11 mills in the south, one less than its Canadian total.

Interfor has 13 sawmills in the United States – 9 in the south and four in the northwest. It has five sawmills in Canada. The growing trend of Canadian ownership of U.S. mills is being fuelled by the potential for a conflict over the timber trade, the availability of timber and lower labour costs in the United States. In the midst of the Pine Beetle Mountain infestation in western Canada, the growth capacity of these firms is severely limited without looking outside of Canada. On April 1, 2019, the U.S. Department of Commerce launched its first administrative audits of anti-dumping and countervailing duties on conifer wood. The opening of this procedure was delayed because of the United States.