Softwood dispute underscores need for NAFTA dispute mechanism, trade expert says
OTTAWA — Canada’s decision to turn to the North American Free Trade Agreement for a solution to the latest softwood lumber dispute proves how critical the agreement’s dispute resolution mechanisms are to this country, a Canadian international trade expert said Wednesday.
Canada on Tuesday asked a review panel under Chapter 19 of NAFTA to investigate the countervailing duties imposed on Canadian softwood imports into the United States.
The U.S. argues Canada unfairly subsidizes its lumber industry, and the question for the panel will be whether the duties are legal under U.S. laws.
This is the fifth Canada-U.S. softwood lumber dispute since 1982, and the third in which Canada has sought relief under the dispute mechanisms of free trade agreements with the U.S. They have largely ruled in Canada’s favour in the past.