Canada has quietly withdrawn two long-running appeals against U.S. anti-dumping duties on softwood lumber, a move officials say is designed to clear the way for a broader negotiated resolution.
The U.S. Commerce Department has accused Canada for decades of unfairly subsidizing its lumber industry, allowing producers to undercut American competitors. Last month, Washington announced plans to nearly triple duties on Canadian softwood lumber to more than 20 per cent — a sharp escalation in one of the longest trade disputes between the two countries.
According to the Wall Street Journal, Canada dropped its challenges earlier this month of two U.S. anti-dumping reviews dating back more than a decade. Ottawa confirmed the step, with Global Affairs Canada spokesperson Dina Destin saying the decision was made in consultation with provinces, industry leaders, and partners.
“It reflects a strategic choice to maximize long-term interests and prospects for a negotiated resolution with the United States,” Destin said. She stressed, however, that Canada continues to view the duties as unfair and is still pursuing six other active challenges.
The decision comes as Prime Minister Mark Carney’s government seeks to address U.S. President Donald Trump’s growing list of sector-specific tariffs — including those on steel, aluminum, autos, and lumber — while avoiding a wider confrontation that could threaten exemptions under the Canada-U.S.-Mexico Agreement.
At the start of September, Canada dropped most of its retaliatory tariffs on American goods, signaling a shift toward de-escalation. Carney has also unveiled a major support package for the lumber sector, promising $700 million in loan guarantees and $500 million in long-term investments to help producers diversify export markets and develop new products.
While Canada’s retreat on two cases may frustrate some industry players, officials argue it could improve chances of striking a durable settlement with Washington after decades of recurring disputes.