North Vancouver – The Independent Wood Processors Association (IWPA) says today’s preliminary U.S. softwood lumber duty ruling under Administrative Review 7 (AR7) is further evidence that the softwood lumber dispute has become a broken process that continues to punish businesses and consumers on both sides of the border without bringing either side closer to resolution.
The U.S. Department of Commerce has posted a preliminary tariff determination expected to be finalized in August. The preliminary combined duty rate includes a countervailing duty (CVD) of 14.17 per cent and an anti-dumping duty (AD) of 10.66 per cent, for a total combined rate of 24.83 per cent. The current duty rate of 35.16 per cent will remain in effect until a final determination is issued.
While the preliminary rate suggests a possible reduction, uncertainty remains over whether the final rate will hold or rise. Additional tariffs, including the 10 per cent Section 232 tariff and possible future tariffs under Section 301(b) of the U.S. Trade Act, could keep the total tariff burden above 35 per cent.
The Association, which represents British Columbia’s small and medium-sized value-added wood manufacturers, says the ongoing dispute continues to unfairly harm companies that should never have been included in the first place.
“Nearly ten years into this dispute, we are still watching the same movie over and over again—more duties, more reviews, more appeals, and no resolution,” said Andy Rielly, Chair of the IWPA. “This ongoing cycle is creating uncertainty for businesses, workers, and consumers across North America and highlights the urgent need for a negotiated solution.”
IWPA says its members do not harvest Crown timber, do not hold timber tenures, and do not receive subsidies. Instead, member companies purchase lumber and logs through arm’s-length market transactions on the open market.
“Our businesses buy wood the same way American companies do—we go into the market and pay the market price,” said Brian Menzies, Executive Director of IWPA. “We are not subsidized. We are not the problem. This is beginning to look less like trade enforcement and more like protectionism masquerading as trade policy.”
The Association says the U.S. Lumber Coalition, led by a few major forest land-owning lumber companies, must stop relying on procedural trade actions and engage in honest discussions about the real issues behind the dispute.
“If the U.S. industry has real concerns, then let’s hear them,” said Menzies. “Enough hiding behind paperwork, bureaucracy, and endless administrative rulings. It is time to come to the table and have a serious conversation about the market realities and structural interests driving this dispute. Businesses on both sides of the border need certainty.”
IWPA also says the Canada-United States-Mexico Agreement (CUSMA/USMCA) dispute resolution process has failed to produce meaningful progress.
“After nearly a decade, it is obvious the current dispute mechanisms are not working,” said Menzies. “If legal channels cannot solve this, then political leaders need to step in and negotiate a real solution.”
The Association is calling on both governments to break the cycle of endless litigation and prioritize direct negotiations before more Canadian and American businesses, workers, and consumers become casualties of a dispute that is fueling uncertainty and driving up housing and construction costs across North America.
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About the IWPA
The Independent Wood Processors Association (IWPA) represents British Columbia’s 60 small and medium-sized value-added wood manufacturers. Our members do not hold timber tenure and purchase their lumber and logs on the open market. Collectively, IWPA members employ approximately 3,800 people and contribute nearly $2 billion annually to Canada’s economy.
IWPA members transform the wood they purchase into higher-value products used in homes and communities across North America, including fencing, decking, siding, railings, flooring, and window frames. Our membership includes remanufacturers, secondary manufacturers, veneer producers, and other specialty wood product companies. IWPA members are Canadian-owned businesses that create local jobs and reinvest in their communities.
For further information, please contact
Brian Menzies
Executive Director
Cell 250-213-5397
IWPA.ca