A trade dispute between the USA and Canada

Abstract

Purpose

The purpose of this paper is to identify the issues in the US‐Canada trade dispute over lumber trade, to analyze the US and Canada's claims and positions in this dispute, and make projections of future possibilities regarding this dispute.

Design/methodology/approach

The research method is to review published studies dealing with this dispute and gather public and private data pertaining to issues involved in this dispute.

Findings

The paper finds that the US lumber industry's claims of unfair trade by Canada's lumber industry are not supported. Canada is in compliance with World Trade Organization policies and North America Free Trade Agreement (NAFTA)'s agreement. US antidumping and countervailing tariffs on imported Canadian lumber violate NAFTA's rules. Past and current resolutions to this dispute are temporary.

Originality/value

This paper explores the real reasons behind the dispute and evaluates the merits of the interim solutions.

Citation

Abboushi, S. (2010), "A trade dispute between the USA and Canada", Competitiveness Review, Vol. 20 No. 1, pp. 43-51. https://doi.org/10.1108/10595421011019966