NAFTA Panel Upholds U.S. Countervailing Determination on Canadian Softwood Lumber
Published Oct. 13, 2026
Key Points
- The NAFTA Binational Panel affirmed the U.S. Department of Commerce’s second redetermination on remand on October 5, 2026.
- The case concerns the final affirmative countervailing duty determination on certain softwood lumber products from Canada.
- The decision does not change the cash-deposit rates currently in effect.
- Current combined cash-deposit rates under the sixth administrative reviews include 47.59% for Canfor, 26.47% for West Fraser, and 35.16% for other companies covered by those reviews.
- Commerce’s seventh administrative reviews could change applicable rates once the agency publishes final results.
- A separate 10% Section 232 tariff applies to covered softwood timber and lumber products in addition to applicable antidumping and countervailing duties.
The U.S.
Department of Commerce’s International Trade Administration published a notice on October 13, 2026, confirming that a North American Free Trade Agreement (NAFTA) Binational Panel upheld Commerce’s second redetermination on remand in the proceeding involving certain softwood lumber products from Canada. The panel issued its decision on October 5, 2026, in Certain Softwood Lumber Products from Canada: Final Affirmative Countervailing Duty Determination (Secretariat File Number USA-CDA-2017-1904-02). The ruling effectively concludes this challenge and does not change the cash-deposit rates currently in effect.
Panel Upholds Commerce’s Second Remand Determination
The decision closes a review that has run for nearly nine years. On November 14, 2017, Canadian federal and provincial governments, regional lumber associations, and producers including Canfor, J.D. Irving, Resolute, Tolko and West Fraser requested panel review. They challenged Commerce’s final countervailing duty determination, published November 8, 2017.
The panel sent the case back to Commerce twice before affirming it:
- May 6, 2024: The panel affirmed in part and remanded in part Commerce’s final determination. Commerce filed its first redetermination on December 17, 2024.
- March 6, 2026: The panel affirmed in part and remanded in part that redetermination. Commerce’s second redetermination was due by June 4, 2026.
- October 5, 2026: The panel affirmed Commerce’s second redetermination.
Current Antidumping and Countervailing Duty Rates
The sixth administrative reviews established amended final cash-deposit rates for covered Canadian softwood lumber exporters. According to Global Affairs Canada’s official duty-rate information, the combined rates include the following:
Amended final results of the sixth administrative reviews (Source: Global Affairs Canada)
The amended antidumping duty rates apply to entries on or after July 29, 2025, and the countervailing duty rates took effect on August 12, 2025. These cash-deposit rates remain in effect until the U.S. Department of Commerce publishes final results of the seventh administrative reviews, which are expected imminently.
Companies outside the sixth reviews remain subject to their most recent applicable rates. These duties apply in addition to the 10% Section 232 tariff on softwood lumber.
Seventh Administrative Reviews Could Change Duty Rates
Commerce’s seventh administrative reviews cover Canadian softwood lumber entries made from January 1 to December 31, 2024. Global Affairs Canada reported that preliminary results appeared in April 2026 and post-preliminary countervailing duty results followed on June 30, 2026. Final results were expected as late as October 2026 if the deadline was fully extended.
The final results could change the cash-deposit rates for companies covered by the reviews. However, preliminary and post-preliminary calculations do not replace existing rates.
Importers should check the official Canadian softwood lumber updates and Commerce’s published determinations for the latest status. Do not use preliminary or post-preliminary rates as final rates for customs entries.
Separate Section 232 Tariff Applies to Covered Lumber
The U.S. introduced a separate 10% Section 232 tariff on specified softwood timber and lumber products, effective for goods entered on or after October 14, 2025.
The tariff applies in addition to antidumping and countervailing duties on products covered by both measures. The exact requirements depend on the product’s tariff classification and the scope of the applicable measures.
Proclamation 10976 lists the covered tariff classifications in Annex I and states that the Section 232 duty is in addition to other applicable duties.
NAFTA Decision Is Separate From Other Softwood Lumber Proceedings
The October 5 decision concerns the original countervailing duty determination from 2017. It should not be confused with administrative reviews or other legal challenges involving Canadian softwood lumber.
The Commerce Department conducts antidumping and countervailing duty proceedings separately. A ruling in one proceeding does not automatically determine the outcome of another.
Separate USMCA Chapter 10 challenges to earlier administrative reviews, including the 2017–2018 countervailing duty review, are handled as distinct proceedings. Importers can follow those cases through the Trade Agreements Secretariat’s e-filing registry.
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