"The US Department of Commerce acted inconsistently with Article 14(d) of the Subsidies and Countervailing Measures Agreement by improperly rejecting the proposed private stumpage and log prices in Ontario as a valid stumpage benchmark to determine the adequacy of remuneration for Crown timber provided to the respondent companies by the province," the ruling read.
The WTO panel has recommended the US to "bring its measure into conformity with its obligations under the WTO’s Subsidies and Countervailing Measures (SCM)."
The two neighbours have been clashing over duties on lumber in WTO for decades. In 2006, the sides have reached a settlement under which the US agreed to suspend its duties. The deal expired in 2015 and the administration of US President Donald Trump, who took power two years later, has subsequently imposed new tariffs on Canadian lumber, prompting a new dispute.
