(Ottawa) The federal government applauds a ruling under the North American Free Trade Agreement (NAFTA) which maintains that certain elements of the United States’ calculation of duties on Canadian softwood lumber are incompatible with their own legislation.

Ottawa welcomes the NAFTA dispute settlement panel accepting Canada’s challenge to a U.S. dumping decision, according to a statement from Minister of International Trade and Economic Development Mary Ng.

Under U.S. tariff law, the Commerce Department determines whether goods are being sold for less than fair value or are receiving subsidies from other governments.

In her statement, Ms. Ng says tariffs on Canadian softwood lumber are “unjustified.”

“The only fair outcome would be for the United States to immediately revoke tariffs on Canadian softwood lumber,” she adds.

The statement said the NAFTA panel asked the U.S. Commerce Department to review important aspects of its dumping decision.

Ms Ng also said the US imposition of “unfair and illegal” tariffs for years has “harmed our highly integrated supply chains”.

“We will continue to defend the interests of the Canadian softwood lumber industry and its workers, while pursuing other legal challenges to unfair American customs duties,” concludes the Liberal minister.

The 60-page ruling released Thursday shows the NAFTA panel upheld the U.S. Commerce Department’s rulings in five areas, but sent three back demanding further explanation.

These include the Department of Commerce’s pricing methodology, the treatment of export taxes under the 2006 Canada-US Softwood Lumber Agreement, -United. It also affects a decision regarding start-up adjustments for a factory located in northern Ontario and operated by a Montreal company belonging to Paper Excellence.