Forest Products: Trade Policy Highlights


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	FOREST PRODUCTS TRADE POLICY HIGHLIGHTS - AUGUST 2004
	WTO Appellate Body Upholds Ruling Against the United States’ Use of “Zeroing” in the Calculation of Antidumping Margins in the U.S. - Canadian Softwood Lumber Dispute
	On August 11, 2004, a WTO appellate body upheld an earlier finding that the United States had improperly calculated the margins used to determine antidumping (AD) rates for Canadian softwood lumber by assigning a margin of zero to goods where the export price exceeds the home market price. The appellate body did not rule on the use of the “zeroing” generally, but concluded that the use of “zeroing” as applied by the United States in this case was inconsistent with WTO rules. The WTO did not challenge the United States’ basic right to impose the AD duties, however.

	Korean Government Eases Limitations on Wood-Frame Building Heights
	On August 3, 2004, the Ministry of Construction and Transportation (MOCT) revised the building codes to allow for wood-frame construction up to five stories, an increase from the current three stories. According to MOCT officials, the decision was made due to improvements in the technology of wood-frame construction in Korea and the production of wood construction materials.

	NAFTA Panel Rules Against the United States in the U.S. - Canada Lumber Dispute
	On August 31, 2004, a NAFTA panel ruled for the third time that the International Trade Commission (ITC) had failed to prove that Canadian softwood lumber imports threaten U.S. softwood lumber producers, and directed the ITC to change its determination within ten days. The panel also accused the ITC of undermining the dispute settlement process.

	China Developing Voluntary Timber Standard
	Under the authority of the Ministry of Commerce, the China Wood Preservation Center is developing a voluntary industry standard for all commercial wood products in China. The standard will include information regarding species, product name, trademark, size, grade, manufacturer, moisture content, manufacturing date, treatment method, inspecting agency and wood certification status.