US Lumber Coalition urges Commerce Dept. to address Canadian, Swedish, and German subsidies that distort softwood lumber markets; coalition details nearly 100 Canadian countervailable subsidies and European grants

May 19, 2025 (Targeted News Service) –

By Jaymar B. Talang

TARGETED NEWS SERVICE (founded 2004) features non-partisan 'edited journalism' news briefs and information for news organizations, public policy groups and individuals; as well as 'gathered' public policy information, including news releases, reports, speeches. For more information contact MYRON STRUCK , editor, editor@targetednews.com, Springfield, Virginia ; 703/304-1897; https://targetednews.com

WASHINGTON , May 18 -- The U.S. Lumber Coalition (USLC) has called on the U.S. Department of Commerce to address foreign subsidies that it claims unfairly disadvantage American softwood lumber producers. In a detailed letter submitted on May 9, 2025 , to Deputy Assistant Secretary Christopher Abbott , the coalition outlined subsidy programs in Canada , Sweden , and Germany that it argues distort markets and harm U.S. workers and businesses in the forestry sector.

The USLC, representing large and small softwood lumber producers nationwide, emphasized the need for a level playing field. "Ensuring a level playing field for domestic producers of softwood lumber products is crucial to fostering an environment that results in more softwood lumber production in the United States ," wrote Zoltan van Heyningen , the coalition's executive director. The comments were filed in response to the Commerce Department's request for input on subsidies affecting softwood lumber imports, ahead of its semi-annual report to Congress .

The coalition highlighted Canada's extensive subsidy programs, noting that nearly 100 countervailable subsidies have been identified in prior reviews. These subsidies, provided at federal and provincial levels, have prompted countervailing duties on Canadian lumber imports since January 2018 . The duties have enabled domestic producers to invest and grow, supporting thousands of jobs in forestry-dependent communities.

In Sweden , the USLC identified multiple programs, including grants from BioInnovation for research into bio-based materials, which have funded projects to "increase the overall yield of sawn timber products." Other Swedish initiatives, such as the Climate Leap and Green Industry Leap, provide grants covering up to 70% of costs for renewable energy transitions and green technology development. Swedish lumber companies like Vida, owned by Canfor Corporation , may benefit from these programs, giving them an edge in the U.S. market.

Germany's subsidies include federal grants for renewable resources and state-level programs like Baden-Wurttemberg's Wood Innovative Program, which funds up to 100% of research and development projects in the wood products industry. The coalition also pointed to tax relief under Germany's Electricity Act, which reduces electricity costs for forestry enterprises, a benefit previously deemed an unfair subsidy.

The USLC's letter underscores the broader impact of these subsidies, which "distort markets and artificially lower costs for the companies receiving them," according to van Heyningen . By providing foreign producers with advantages, these programs threaten American jobs and the competitiveness of the U.S. lumber industry.

The Commerce Department's ongoing efforts to monitor and address foreign subsidies are critical, the coalition argues, to protecting domestic producers. The USLC's submission, filed through the ad hoc Committee Overseeing Action for Lumber International Trade, builds on its successful 2016 petitions that led to trade relief measures. As global competition intensifies, the coalition urges swift action to ensure fair trade practices and support the growth of American lumber production.

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Read full text of the public communication here: https://downloads.regulations.gov/ITA-2025-0002-0002/attachment_1.pdf

View Regulations.gov posting on May 9, 2025 , and docket information here: https://www.regulations.gov/comment/ITA-2025-0002-0002

TARGETED NEWS SERVICE (founded 2004) features non-partisan 'edited journalism' news briefs and information for news organizations, public policy groups and individuals; as well as 'gathered' public policy information, including news releases, reports, speeches. For more information contact MYRON STRUCK , editor, editor@targetednews.com, Springfield, Virginia ; 703/304-1897; https://targetednews.com