WTO panel rules that U.S. duties on Canadian lumber are illegal AP, Billings Gazette
The battle between the United States and Canada over lumber has been building since the expiration of their Softwood Lumber Agreement in March 2001.
Under that agreement, Canada had been allowed to ship 14.7 billion board feet of duty-free lumber to the United States each year, with tariffs set for shipments beyond that level. In return, the United States agreed not to launch any trade action, including the imposition of protective duties.
When the agreement ran out, the United States, under pressure from domestic producers, moved quickly to impose extra duties on Canadian imports.
So far WTO rulings have been mixed, with some favoring the Canadian position and others siding with the United States.