West Fraser Timber has petitioned an independent trade panel in the hope of recouping US$14m in duties it has so far paid to America during the softwood lumber dispute.
The company made its presentation to a North American Free Trade Agreement (NAFTA) panel in a case which could pave the way for all US$2.5bn duties being returned to Canadian lumber firms. West Fraser is currently paying a tariff of 1.79% on its products.
A separate NAFTA panel may consider a case brought by Canada’s timber industry next year.
US trade rules dictate that duties collected will be distributed to American lumber firms allegedly disavantaged by Canadian forestry and pricing systems. No money has yet been paid out by the US commerce department.
Canada has already successfully contested the principle of countervailing and anti-dumping duties before NAFTA panels and the World Trade Organisation, while the US International Trade Commission has reversed its earlier judgements that Canadian companies were illegally under-pricing timber.
