Binational Panel Upholds US Countervailing Duties on Canadian Softwood Lumber

The Binational Panel constituted under Article 1904 of the North American Free Trade Agreement (NAFTA) affirmed on 5 October 2026 the U.S. Department of Commerce’s Second Redetermination on Remand in the countervailing duty case on certain softwood lumber products from Canada. The decision, which is binding on the parties, was announced by the United States Section of the NAFTA Secretariat in the Federal Register of 13 October 2026 (Vol. 91, No. 196, p. 64880).

Chapter 19 of Article 1904 of NAFTA provides a dispute settlement mechanism involving trade remedy determinations issued by the Government of the United States, the Government of Canada and the Government of Mexico. Following a Request for Panel Review, a Binational Panel is composed to provide judicial review of the trade remedy determination being challenged and then issues a binding Panel Decision.

The notice was issued by the United States Section, NAFTA Secretariat, International Trade Administration, Department of Commerce, and is published pursuant to Rule 70 of the Rules of Procedure for Article 1904 Binational Panel Reviews, which were adopted by the three governments for panels requested under Article 1904(2) of NAFTA.

What the Panel Decided

On 5 October 2026 the Binational Panel issued its Decision on the Second Redetermination on Remand in the matter of Certain Softwood Lumber Products from Canada: Final Affirmative Countervailing Duty Determination. The panel affirmed the U.S. Department of Commerce’s Second Redetermination on Remand, so the determination under review stands at the panel stage of the dispute.

The notice sets out the following elements:

• Case: Certain Softwood Lumber Products from Canada: Final Affirmative Countervailing Duty Determination.
• Secretariat File Number: USA-CDA-2017-1904-02.
• Decision date: 5 October 2026.
• Deciding body: Binational Panel, Article 1904, NAFTA.
• Action: Notice of panel decision.
• Publication: Federal Register, Vol. 91, No. 196, 13 October 2026, p. 64880.

The Article 1904 Mechanism

Article 1904 panels operate as the NAFTA-specific substitute for judicial review of national trade remedy determinations. The mechanism covers determinations issued by the three signatory governments, and the resulting Panel Decision is binding rather than advisory.

The decision concerns the second redetermination produced on remand, that is, the determination the U.S. Department of Commerce issued after the matter was returned to it for further proceedings. The Rules of Procedure for Article 1904 Binational Panel Reviews were adopted by the three governments for panels requested pursuant to Article 1904(2) of NAFTA, and the Secretariat publishes notice of each panel decision under Rule 70.

Publication and Contacts

The notice is dated 8 October 2026 and signed by Vidya Desai, United States Secretary, NAFTA Secretariat. Requests for further information may be directed to the Secretariat at Room 2061, 1401 Constitution Avenue NW, Washington, DC 20230, telephone (202) 482-2311.

The notice refers readers to the NAFTA Secretariat’s website for the complete text of the Article 1904 rules.

What It Means

The affirmation confirms the U.S. Department of Commerce’s second redetermination on remand and closes the current panel stage of the countervailing duty dispute over Canadian softwood lumber. For Canadian producers and exporters of softwood lumber, and for U.S. importers and downstream users of the product, the reviewed determination stands as upheld by the Binational Panel.

Source: Federal Register, Vol. 91, No. 196, 13 October 2026, Notices, p. 64880 (official reference: 2026-20830; Secretariat File Number USA-CDA-2017-1904-02).