The U.S. Court of International Trade ordered the U.S. Department of Commerce to redo countervailing duties on Canadian lumber, ordering the department to "better explain its refusal to check whether suppliers for investigated companies had received government subsidies," according to the legal website, Law360.com.

The Commerce Department conducts an annual review of its anti-dumping (AD) and countervailing duty (CVD) orders. Preliminary results from the fifth administrative review of the duty orders were released Feb. 1, 2024. Commerce signaled its intention to significantly increase its duties on softwood lumber from Canada from 8.05% to an estimated 13.86%. Since the review results are preliminary, they do not take effect. Commerce is expected to issue its final results in summer 2024, at which time they will take effect.

At the time, Mary Ng, the Canadian Minister of Export Promotion, International Trade and Economic Development, said she was "extremely disappointed."

“U.S. duties on softwood lumber already unjustifiably harm consumers and producers on both sides of the border. Increased duties will further harm the Canadian softwood lumber industry, workers and communities, and make housing even less affordable for Americans.

She said that Canada will continue to work to defend Canadian interests through all available avenues, including litigation under NAFTA, the Canada-United States-Mexico Agreement, the U.S. Court of International Trade and at the WTO.

In a ruling by the Court, Slip Op. 24-50, the Court of International Trade ruled that "Commerce’s Final Results are remanded in part and sustained in part," and ordered that "on remand, Commerce shall reconsider or further explain its determination not to account for subsidies received by suppliers of lumber to the CVD expedited review respondents."

They also ordered that Commerce shall file its remand redetermination on or before July 22, 2024.