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Softwood Lumber |
Canada's Legal Actions
Canadian Challenge in the U.S. Court of International Trade
In addition to its challenges against the United States in the WTO and the
NAFTA on softwood lumber, Canada had also taken action in the U.S.
Court of International Trade (CIT) to address the question of U.S. compliance
with its own domestic law regarding implementation of NAFTA rulings. Specifically,
the Government of Canada was requesting that the Court order the United
States to revoke the CVD and AD duty orders and refund, with interest, the
duty deposits collected since May 2002.
On August 10, 2005, the NAFTA
Injury ECC dismissed U.S. allegations that a NAFTA panel, which had
found the 2002 U.S. ITC threat of injury determination inconsistent with
U.S. law, had acted contrary to NAFTA. Under international trade rules
and U.S. law, no CVD or AD duties can be imposed if there is no injury
or threat of injury to the U.S. industry.
Later that same day, the U.S. responded that the ECC decision would "have
no impact on the antidumping and countervailing duty orders" given
the ITC’s later injury determination (November 2004) which they
said gave them the basis to continue to impose duties. Canada’s
view is that the United States was required to revoke the CVD and AD duty
orders and to refund, with interest, the duty deposits collected since
May 2002.
On July 21, 2006, the U.S. CIT issued a decision, finding that there
was no legal basis for the U.S. duties. Subsequently, on October 13, 2006,
the U.S. CIT issued final judgment that affirmed that successful plaintiffs
before NAFTA Chapter 19 Panels are entitled to receive complete relief,
including refunding all duty deposits.
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