Fact Sheet: Why We Need the Full Enforcement of the U.S. Trade Laws
February 7, 2019| | Download Resource
Canada heavily subsidizes its lumber industry, resulting in artificially high production levels. In turn, Canadian companies unload their excess production into the U.S. market, harming thousands of well-paying American jobs. When the 2006-2015 U.S.-Canada Lumber Agreement expired, Canada expanded sales of subsidized, below-market-value softwood lumber to the United States.
To help offset this unfair trade advantage, in 2017, the U.S. government took the appropriate action of implementing antidumping and countervailing duties on imported Canadian softwood lumber. The U.S. government must continue to implement the trade laws—which conform to the World Trade Organization and general international obligations. The U.S. industry remains open to the United States working with Canada to sign a new trade agreement that allows for a level-playing field and includes a clean quota without exemptions. To date, however, Canada has yet to demonstrate that it is serious about such negotiations.