On February 3, 2020, the U.S. Department of Commerce issued its interim conclusion for the first administrative review (AR1) of anti-dumping duties (AD) and countervailing duties (CVD) on imports of certain conifer wood products from Canada. (b) the last time the product was restored prior to export by an independent producer of softwood products, the value that would be determined by the FOB in the facility where the conifer wood used to manufacture the product went through its last primary processing; On September 28, 2020, the United States appealed the August 2020 WTO panel`s report on Canada`s challenge to U.S. countervailing duties on conifer wood. Canada is one of the world`s largest wood producers and exporters. The wood industry creates thousands of direct and indirect jobs in mechanical construction, transportation and construction. Approximately 80% of Canada`s wood production is for export, making it an important aspect of the Canadian economy. The decision was unanimously taken for the four-member trade body, which is stagnating over the petition filed by the U.S. Lumber Coalition.
Canada immediately took legal action against the decision under the NAFTA Dispute Settlement Mechanism, Chapter 19, in an official statement in which it stated that the decision was “unfair, unjustified and disturbing.”  Canada has already won several NAFTA challenges in the past with respect to conifer wood issues.  In March 2018, Canada intensified the WTO dispute and asked the international trade body to establish an adjudication body to assess its dispute with the United States.  Canadian officials argued that talks with the United States had failed. On May 22, the NAFTA Chapter 19 Injury Panel issued its decision on Canada`s challenge to the U.S. International Trade Commission (ITC) remand provision and upheld the ITC`s decision that imports of Canadian conifer wood products were a serious violation of U.S. industry. The conifer wood industry is an important part of the Canadian and U.S. economy. Both countries have acted since 19.19.19. The conifer dispute is one of the longest and most important trade disputes between the United States and Canada, which still affect the timber industry today.