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An economic perspective on the determination of dumping in the US–Canada softwood lumber trade — an analysis for Ontario

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Dumping has been one of the most controversial issues in the never-ending softwood lumber trade dispute between the United States (US) and Canada. In this paper, we investigate whether the softwood lumber producers in Ontario dumped product into their major market in the US during the period from April 1996 to September 2006. The Enhanced Parity Bounds Model was used to explore the possibility that Ontario’s softwood lumber producers had exercised price discrimination between the Toronto market and the Great Lakes market. Our analysis indicates that the industry had on average charged a higher price in the Great Lakes market than in the Toronto market during this period. Based on this evidence and the economic conditions in which a US antidumping investigation and two administrative reviews were conducted, we draw the conclusion that the Ontario’s softwood lumber producers did not dump product into the US market during the study period.

Le dumping est une des questions les plus controversées dans le conflit interminable du bois d’œuvre entre les États-Unis et le Canada. Dans cet article, nous avons voulu déterminer si les producteurs ontariens de bois d’œuvre résineux ont fait du dumping dans leur principal marché aux États-Unis au cours de la période allant d’avril 1996 à septembre 2006. Un modèle d’intégration des marchés (enhanced parity bounds model) a été utilisé pour explorer la possibilité que les producteurs ontariens de bois d’œuvre résineux aient pratiqué une discrimination des prix entre le marché de Toronto et celui des Grands Lacs. Notre analyse indique que l’industrie a chargé un prix en moyenne plus élevé dans le marché des Grands Lacs que dans celui de Toronto durant cette période. Sur la base de cette preuve et des conditions économiques dans lesquelles l’enquête anti-dumping et les révisions administratives américaines ont été faites, nous arrivons à la conclusion que les producteurs de bois d’œuvre résineux de l’Ontario n’ont pas fait de dumping dans le marché américain durant la période qui a été étudiée.

Document Type: Research Article

Publication date: May 1, 2009

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  • Published since 1971, this monthly journal features articles, reviews, notes and commentaries on all aspects of forest science, including biometrics and mensuration, conservation, disturbance, ecology, economics, entomology, fire, genetics, management, operations, pathology, physiology, policy, remote sensing, social science, soil, silviculture, wildlife and wood science, contributed by internationally respected scientists. It also publishes special issues dedicated to a topic of current interest.
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