The World Trade Organization (WTO) has preliminarily ruled that duties on imports of Canadian softwood lumber imposed by the U.S. Commerce Department are flawed and should be rescinded. The decision would overturn a countervailing duty of approximately 19% that American consumers pay on shipments of Canadian lumber.

Canada has also filed challenges with the WTO and a North American Free Trade Agreement panel to repeal a roughly 8% U.S. antidumping duty. Both the lumber and dumping duties were imposed after the U.S. Commerce Department in 2002 ruled that the Canadian lumber industry was government-subsidized and therefore represented unfair competition to U.S. lumber producers.

A final ruling from the WTO is expected later this month.