ITC Files Response to NAFTA Panel Decision on Softwood Lumber from Canada
The International Trade Commission (ITC) has issued a news release announcing that it has filed its response to the decision and order of the North American Free Trade Agreement (NAFTA) U.S.-Canada Binational Panel (Panel) regarding the antidumping (AD) and countervailing (CV) duty investigations on softwood lumber from Canada.
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(According to the ITC, on August 31, 2004, the Panel remanded the ITC's affirmative determinations on remand in these AD and CV duty investigations. The ITC states that it had, in its original and two remand determinations, found that the record evidence indicated that the domestic industry was threatened with material injury by reason of subject imports of softwood lumber from Canada.)
ITC Issues Determination of No Threat of Material Injury Despite its View that Panel's Decision Oversteps its Authority, Etc.
The ITC states that the Panel's latest decision includes explicit instructions directing the ITC to make a determination consistent with the decision of the Panel that the evidence on the record does not support a finding of threat of material injury.
Therefore, because the ITC respects and is bound by the NAFTA dispute settlement process, it states that it is issuing a determination, consistent with the Panel's decision, that the U.S. softwood lumber industry is not threatened with material injury by reason of subject imports from Canada.
However, in so doing, the ITC states that it disagrees with the Panel's view that there is no substantial evidence to support a finding of threat of material injury, and the ITC continues to view the Panel's decisions throughout this proceeding as overstepping its authority, violating the NAFTA, seriously departing from fundamental rules of procedure, and committing legal error.
Panel's Decision Signals End of Panel Proceeding
The ITC states that the Panel's decision and order of August 31, 2004 can only be seen as a reversal of the ITC's affirmative determination of threat of material injury, despite the fact that neither the NAFTA nor U.S. law gives the Panel authority to reverse the ITC's determination in these circumstances. As such, the Panel's decision signals the end of this Panel proceeding.
BP will update subscribers as new information becomes available.
ITC news release 04-100 (dated 09/10/04, Inv. Nos. 701-TA-414 and 731-TA-928) available at http://www.usitc.gov/lumber.pdf
ITC's views (which include one dissent) available at ftp://ftp.usitc.gov/pub/reports/opinions/fremand3opin.pdf