A decision by the United States Department of Commerce a source of positive news for those in the softwood lumber industry here in Saskatchewan. It was announced earlier this week an administrative review of duties on Canadian softwood lumber exports to the U.S. decided to reduce the duties imposed on softwood lumber by 11 percent, and the change will be made retroactively. 

The decision is expected to see several millions of dollars in relief for Saskatchewan companies, which have paid over $50 million in duties since 2017.  

“The American duties on Canadian softwood lumber exports continue to be unfair and unjustified,” Trade and Export Development Minister Jeremy Harrison said. “This reduction in duties, however, is a step in the right direction for advancing free trade for our softwood exports.” 

The softwood lumber dispute between Canada and the United States has been a concern between the two nations for nearly 40 years.  The United States has long contended that since timber is mostly owned by provincial governments, the charges set to harvest the timber amount to an unfair subsidy, and instituted duties as a result. Over the years, the World Trade Organization has repeatedly found in Canada’s favour that the stumpage fee doesn’t amount to a subsidy and that the duties should not be imposed.