An economic perspective on the determination of dumping in the US-Canada softwood lumber trade--an analysis for Ontario
2009
Yang, Feng'e | Kant, Shashi | Asinas, Emmanuel
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.
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