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United States – Preliminary Determination with Respect to Certain Softwood Lumber from Canada: What is a Subsidy?*

  • Henrik Horn (a1) and Petros C. Mavroidis (a2)
Abstract

In August 2001, the United States Department of Commerce (USDOC) issued a preliminary determination that Canadian schemes for allocating standing timber to private harvesters – “stumpage” programs – provided countervailable subsidies to Canadian softwood lumber producers. It also preliminarily determined that critical circumstances existed in the US softwood lumber industry, caused by Canadian imports. Provisional measures were imposed on the basis of a preliminary subsidy rate of 19.31 percent, applicable to all producers/exporters, and applied to all entries of softwood lumber from Canada.

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We are grateful to Gene Grossman, Johan Stennek and the other Reporters in the project for helpful exchanges. We have also benefited from editorial assistance by Michael Greenwald and Christina Lönnblad.

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References
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Bagwell Kyle and Staiger Robert W.. 2002. The Economics of the World Trading System. Cambridge, MA: MIT Press.
Grossman Gene M. and Mavroidis Petros C.. 2003. United States – Imposition of Countervailing Duties on Certain Hot-Rolled Lead and Bismuth Carbon Steel Products Originating in the United Kingdom (WTO Doc. WT/DS138/AB/R): Here Today, Gone Tomorrow? In Horn Henrik and Mavroidis Petros C., Principles of World Trade Law: The World Trade Organization. The Case Law of 2001. Cambridge: The American Law Institute and Cambridge University Press.
Janow Merit and Staiger Robert W.. 2003. United States – The Treatment of Export Restraints as Subsidies Under the Subsidies Agreement of the WTO. In Horn Henrik and Mavroidis Petros C., Principles ofWorld Trade Law: The World Trade Organization. The Case Law of 2001. Cambridge: The American Law Institute and Cambridge University Press.
Leamer Edward. 2001. Do Log Export Restrictions in British Columbia Confer A Competitive Advantage on its Softwood Lumber Producers? Submission prepared for the British Columbia Trade Council and the Province of British Columbia.
Nordhaus William D. 2001. An Economic Analysis of Whether Long-Term Tenure Systems in British Columbian Provincial Forests Provide Countervailable Subsidies to Softwood Lumber Imported into the United States. July 20. Submission prepared for the British Columbia Trade Council and the Province of British Columbia.
Sykes Alan O. 2003. The Economics of WTO Rules on Subsidies and Countervailing Measures. Olin John M. Program in Law & Economics Working Papers, No. 186: University of Chicago.
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World Trade Review
  • ISSN: 1474-7456
  • EISSN: 1475-3138
  • URL: /core/journals/world-trade-review
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