The Canadian government defends its forest management system and opposes the grant application and the assertion that wood should be subject to a compensatory tax on these grounds. DECEMBER 2018 – Nearly a year after Canada filed a complaint against countervailing and anti-dumping duties on U.S. timber deliveries, THE first NAFTA body is announced. Canada wins a coin toss and will have three members on the five-man panel, along with two Americans. This body will review the unanimous decision of the U.S. International Trade Commission that U.S. industry has been harmed by timber exports from Canada. Canada has also filed two other NAFTA complaints, as well as two cases filed with the World Trade Organization. To learn more about the Canadian conifer wood industry and support for Canadians, please visit Natural Resources Canada Softwood Lumber. The United States continues to push for taxes on Canadian conifer wood until a tendering system for the purchase of wood is in place in Canada. Three days after the softwood agreements on wood expired, the U.S. wood industry applied for countervailing duties from the Department of Commerce.
 In addition, for the first time, the U.S. industry has filed an anti-dumping action and argues that Canadian wood companies also discriminate unfairly in terms of price. On April 25, 2002, the U.S. company DoC announced that it had set subsidy and anti-dumping rates of 18.79% and 8.43% to reach a combined rate of 27.22%, although different rates were calculated for some companies. Up to February 26, 2003, 15,000 workers were laid off, mainly in British Columbia, because of U.S. tariffs.  Softwood Lumber Division (TNS)Global Affairs CanadaLester B. Pearson Building125 Sussex DriveOttawa, Ontario K1A 0G2Fax: 613-94-8950Email: email@example.com Read more: NAFTA panel backs U.S. trade decision on Canadian softwood lumber The heart of the dispute is the claim that the Canadian lumber industry is unfairly subsidized by federal and provincial governments, as most wood in Canada is owned by the government.
Prices for timber harvesting (cutting tax) are set administratively and not by the competitive market, the standard in the United States. In the United States, conifer wood lands are private property and owners are an effective political lobby. The United States argues that the Canadian agreement constitutes an unfair subsidy and, therefore, is subject to U.S. trade assistance legislation, under which foreign trade, which benefits from subsidies, could be subject to a countervailing duty tariff to offset the subsidy and bring the price of the product back to market. JULY 2018 – Shake and Shingle Alliance, based in Canada, is asking the U.S. Department of Commerce to formally decide whether cedar hooks and shingles should impose conifer duties. In the meantime, the Canadian government confirms that, effective July 1, 10% tariffs will be imposed on a number of U.S. products exported to Canada, including conifer wood plywood. 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 discussions with the United States.