Canada To Challenge Latest US Duties On Softwood Lumber

Ottawa announced Tuesday it will challenge the latest US duties on Canadian softwood lumber that it called "unfair, unjust and illegal."

At the same time, Canada offered to try to negotiate terms with the United States to bring an end to the longstanding trade dispute that has often flared up over the past 40 years.

A previous quota agreement expired in 2015, and in late July of this year Washington imposed a 7.99 percent levy on Canada's timber sector.

"For years, the United States has imposed unfair, unjust and illegal duties on Canadian softwood lumber, hurting Canadian industry and increasing housing costs in both countries," Trade Minister Mary Ng said in a statement.

"Yesterday, Canada filed notices of intent to commence judicial review regarding the latest US decision maintaining these unwarranted duties on our softwood lumber products," she said.

The US lumber industry claims Canada unfairly subsidizes its forestry sector and has on several occasions sought restrictions on Canadian softwood lumber imports through the application of US countervailing duty and antidumping laws.

Most challenges have been won by Canada, but the spats between neighbors have caused turmoil in the forestry sector.

Both Ng and her counterpart, US Trade Representative Katherine Tai, have expressed a desire to resolve the matter through negotiation.

On Tuesday, Ng renewed calls for the two countries "to find a mutually acceptable resolution to this dispute," adding that Ottawa seeks "stability and predictability" for the sector.