NAFTA Panel Backs U.S. Duties on Canadian Softwood Lumber

The ruling upholds findings by the Department of Commerce, countering what U.S. producers describe as a systemic distortion of the North American market. According to the U.S. Lumber Coalition, the Canadian industry currently operates with a massive excess capacity, capable of producing 3.6 times the volume its domestic market can actually consume. This surplus, the Coalition argues, forces Canadian producers to dump excess inventory into the United States at suppressed prices.

Zoltan van Heyningen, Executive Director of the U.S. Lumber Coalition, characterized the ruling as a validation of long-term efforts to protect American jobs and forestry communities. He emphasized that despite Canadian attempts to diversify, the industry remains tethered to U.S. demand. The Coalition intends to continue pushing for the enforcement of trade laws, urging Canada to align its production capacity with actual market realities rather than relying on taxpayer-funded subsidies to maintain unprofitable facilities.