Canada is pleased with the panel’s decision to instruct the US to reevaluate their policy on softwood lumber.

On Thursday, Canada expressed satisfaction with a decision from a trade dispute panel that stated the US should reassess aspects of its policy regarding softwood lumber. This policy currently imposes tariffs on the majority of softwood lumber exported from Canada.

The responsibilities stem from a long-standing trade conflict regarding the organization of Canada’s timber industry that remained unresolved after a quota agreement lapsed in 2015. American producers argue that Canada provides unjust subsidies to its lumber sector.

The US has established tariffs due to their belief that Canadian timber, obtained from federal and provincial lands with lower government-set stumpage fees, is receiving an unjust subsidy. In contrast, the majority of US timber is obtained from private land at market prices.

The ruling on Thursday ordered the US to reassess how they handle export taxes. In July, the US Commerce Department imposed a duty rate of 7.99% on the product.

Trade Minister Mary Ng stated that Canada is satisfied with the decision of the NAFTA dispute panel, which concluded that certain aspects of the US dumping determination are not in accordance with US law.

In 2020, the United States-Mexico-Canada Agreement (USMCA) replaced NAFTA.

Reuters has reported that the US commerce department did not provide a response to their request for comment.