The World Trade Organization on Monday ruled President Donald Trump's administration incorrectly claimed Canada was improperly subsidizing the lumber industry, The Wall Street Journal reports.
The WTO appellate body found the U.S. Department of Commerce relied on calculations that did not comply with global trade standards to defend imposing a 20% tariff on Canadian softwood lumber, which is frequently used to build homes. The decision notes the U.S. relied on benchmark lumber prices in only one Canadian province, as opposed to separate benchmarks for Canada's 10 provinces.
The WTO wrote the U.S. failed "to provide a reasoned and adequate explanation for rejecting the regional benchmarks proposed by" Canada.
U.S. Trade Representative Robert Lighthizer knocked the WTO's decision, saying in a statement, "this flawed report confirms what the United States has been saying for years: the WTO dispute settlement system is being used to shield non-market practices and harm U.S. interests. The panel's findings would prevent the United States from taking legitimate action in response to Canada's pervasive subsidies for its softwood lumber industry."
Theodore Bunker ✉
Theodore Bunker, a Newsmax writer, has more than a decade covering news, media, and politics.
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