Washington, D.C. – The U.S. Department of Commerce has decided to impose a combined 29.01 % duty on imported Canadian lumber to offset unfair trade practices, Senator Thad Cochran (R-MS) announced today.

In its final ruling, the Department set the duty at 19.34 % to countervail subsidies and at 9.67 % to compensate for dumping lumber in the U.S. market.

Senator Cochran said, "I'm pleased that the Department of Commerce and the U.S. Trade Representative have decided to impose duties on Canadian lumber imports. This action will help domestic lumber mills who have experienced tough times due to plummeting lumber prices."

Last April, the U.S. softwood lumber industry filed two cases following the expiration of the U.S.-Canadian Softwood Lumber Agreement. The first was an antidumping case alleging imports were being sold in the U.S. at less than fair value, and the second was a countervailing duty case alleging that subsidized imports were having an injurious effect on domestic lumber mills.

The International Trade Commission will conduct hearings next week to determine whether Canada's subsidies and the dumping of their lumber have caused injury to the U.S. lumber industry.

"The decision of the ITC will affect thousands of workers in Mississippi. The strictest application of the law is needed to stop mill closures, lost jobs, lost sales, and the flood of Canadian lumber," Cochran said.

At this time, the Department of Commerce has ceased all negotiations with Canada on this trade issue.

Cochran said, "I am disappointed that the U.S. and Canada have been unable to negotiate a free and fair trade agreement on this important agricultural commodity. I hope that our two countries can work out a long-term resolution soon."