Leaders in the U.S. lumber industry are lobbying the U.S. Department of Commerce and the U.S. International Trade Commission to put import duties on Canadian softwood lumber. They claim the product is being sold in the U.S. below fair market value. Canadian software lumber imports were up 33% in the first eight months of this year compared to same period of 2015, according to U.S. industry representatives.
The duties are now required to offset the harm caused to U.S. lumber mills by Canadian softwood subsidies and the alleged dumping of that product in the U.S., according to U.S. lumber industry leaders. The lobbying effort is likely to further strain trade relations between U.S. and Canadian lumber industries.
A bilateral trade deal between the U.S. and Canada regarding Canadian lumber exports expired in October 2015. The two sides were unable to negotiate a new softwood lumber agreement over the summer following 100 days of discussions.