The Softwood Lumber Dispute Between Canada and The United States
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(Case Code: ECON022) click on the button below, and select the case from the list of available cases:
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details:
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Price: |
| Case Code |
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ECON022 |
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges
ThemesTrade Dispute |
| Case Length |
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14 Pages |
| Period |
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1983-2007 |
| Pub Date |
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2007 |
| Teaching Note |
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Not Available |
| Organization |
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- |
| Industry |
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Manufacturing (Forest Products) |
| Countries
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USA and Canada |
Abstract:
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The US and Canada have been engaged in a softwood lumber trade dispute for
several decades. While US lumber producers were of the opinion that softwood
lumber from Canada should be considered subsidized goods and therefore a danger
to the US lumber industry, Canadian lumber producers regarded US measures to
contain imports as protectionist. Both countries pursued the matter through
legal channels: the WTO, the NAFTA and the US courts. The two countries also
entered into agreements and passed legislation in an effort to resolve the
dispute amicably. In spite of these efforts, the lumber dispute remained
unresolved. As of mid-2007, the two North American countries continued to be
engaged in a battle over lumber.
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The case looks at some of the aspects of the
softwood lumber dispute between the US and Canada and analyzes
the impact of this dispute on the trade relationship between the
two countries. It ends with a look at the latest Softwood Lumber
Agreement entered into by the two countries.
Issues:
» To understand the softwood lumber dispute between the US and Canada
» To learn about the trade practices of these two countries with respect to
softwood lumber and to examine issues regarding subsidies, countervailing and
antidumping duties, and quantitative restrictions to counter the alleged
subsidies
» To analyze the impact of the lumber dispute on the softwood lumber industry in
Canada and the US
» To understand the legislative action taken to resolve the dispute
Contents:
Keywords:
Trade disputes, Protectionism, Softwood Lumber Agreement,
Subsidies, Dispute resolution mechanism, Export charges, US-Canada Free Trade
Agreement, Market-based pricing, Administered pricing
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