The United States International Trade Commission (ITC) today issued its affirmative determination in its section 129 consistency proceeding regarding Softwood Lumber from Canada, finding that a U.S. industry is threatened with material injury by reason of imports of softwood lumber from Canada that the Department of Commerce has determined are subsidized and sold in the United States at less than fair value.

Chairman Stephen Koplan, Vice Chairman Deanna Tanner Okun, and Commissioners Marcia E. Miller, Jennifer A. Hillman, and Charlotte R. Lane voted in the affirmative. Commissioner Daniel R. Pearson voted in the negative.

The Commission submitted its determination and opinion to the U.S. Trade Representative today. The USTR will decide any further actions in relation to this matter.

View the Commission's opinion at: http://www.usitc.gov/fopin.129.pdf.

BACKGROUND: In May 2002, the Commission made affirmative determinations in the underlying countervailing duty and antidumping investigations, Softwood Lumber from Canada, finding that a U.S. industry was threatened with material injury by reason of imports of softwood lumber from Canada that the U.S. Department of Commerce had determined were subsidized and sold in the United States at less than fair value. In April 2003, the government of Canada requested a World Trade Organization (WTO) dispute settlement panel review of the Commission's determinations. The panel found in April 2004 that the Commission's actions in the underlying investigations were not in conformity with U.S. obligations under the WTO.

On July 27, 2004, the Commission was requested by the U.S. Trade Representative to make a determination under section 129(a)(4) of the Uruguay Round Agreements Act that would render the Commission's actions in the underlying investigations not inconsistent with the panel's findings. In conducting its section 129 proceeding, the Commission held a public hearing and provided parties to the proceeding three opportunities to submit written comments.