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NAFTA Binational Panel Affirms and Remands Software Lumber Decision​

Trade Update • March 24, 2026

Key Points

  • NAFTA Article 1904 binational panel issued a decision on Canadian softwood lumber exports to the U.S.
  • The panel affirmed in part and remanded in part the U.S. Department of Commerce’s countervailing duty determination.
  • The U.S. authority must provide a redetermination by June 4, 2026.
  • Decision issued under Rule 70 of NAFTA Article 1904 Rules of Procedure.
  • Chapter 19 panels replace domestic courts for trade remedy cases between Canada, the U.S., and Mexico.
Flags of Canada and the United States side by side, symbolizing a trade dispute over softwood lumber under NAFTA

A​​​​​​​​​​​​​​​​​​ binational panel under Article 1904 of the North American Free Trade Agreement (NAFTA) has issued a decision on the redetermination on remand in the countervailing duty dispute over certain softwood lumber products from Canada. Issued on March 6, 2026, the panel’s decision upheld parts of the U.S. Department of Commerce’s previous countervailing duty findings while sending other aspects back for further review. This step follows established NAFTA rules that replace domestic judicial review with binational panel assessment for trade remedy matters among the three NAFTA parties: Canada, the United States, and Mexico.

NAFTA Panel Decision

Panel Ruling

The panel approved some elements of the Commerce Department’s countervailing duty decision but required changes to other aspects. Stakeholders should note that certain duties remain unchanged while others will be revised.

Next Steps

The U.S. Department of Commerce is required to complete its redetermination by June 4, 2026. This sets the timeline for the next step in resolving the dispute.

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