NAFTA Panel Decision Leads to Changes in US-Canada Softwood Lumber Duties

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On October 19, 2026, the North American Free Trade Agreement (NAFTA) Secretariat announced a major decision. The decision came from the NAFTA Binational Panel concerning the U.S. Department of Commerce’s countervailing duty (CVD) on certain softwood lumber products from Canada. This panel’s final judgment was not in harmony with the Department of Commerce’s original decision.

In November 2017, the U.S. Department of Commerce had set certain duty rates on lumber from Canada. This decision was challenged, and the case was reviewed multiple times by the NAFTA Binational Panel. As of October 5, 2026, the panel affirmed Commerce’s Second Remand Determination. This led to a Notice of Final Panel Action issued on October 19, 2026.

As a result, the U.S. Department of Commerce has amended its final determination. The countervailing subsidy rates for Canadian companies Canfor Corporation, J.D. Irving, Resolute FP Canada Inc., Tolko Marketing and Sales Ltd., West Fraser Mills Ltd., and all other companies have been adjusted.

The new subsidy rates for these companies are:

  • Canfor Corporation: reduced from 13.24% to 12.49%
  • J.D. Irving Limited: reduced from 3.34% to 2.96%
  • Resolute FP Canada Inc.: reduced from 14.70% to 13.90%
  • Tolko Marketing and Sales Ltd.: reduced from 14.85% to 11.01%
  • West Fraser Mills Ltd.: reduced from 17.99% to 16.73%
  • All other producers and exporters: reduced from 14.19% to 12.80%

For companies with updated cash deposit rates from previous reviews, these changes won’t alter the current deposit rates. However, for other companies without updated rates, new instructions will be issued to U.S. Customs and Border Protection (CBP).

This notice was officially released and published on October 28, 2026, by Scot Fullerton, Acting Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. The decision is important for trade between the U.S. and Canada, especially in the lumber industry. This adjustment of rates could impact the market and trade relations moving forward.


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