Terminal Forest Products Ltd., a Canadian forest products company, has submitted a claim to arbitration under the UNCITRAL Arbitration Rules on behalf of itself and its U.S. enterprises. Terminal Forest claims damages for alleged injuries resulting from certain U.S. antidumping, countervailing duty and material injury determinations on softwood lumber. The U.S. Department of Commerce issued final antidumping and countervailing duty determinations on softwood lumber in March 2002. In May 2002, the U.S. International Trade Commission issued a final determination that the U.S. softwood lumber industry was threatened with material injury by reason of imports from Canada of softwood lumber. As a result of those determinations, Terminal Forest is required to pay duties on softwood lumber products imported to the United States.
Terminal Forest's notice of arbitration alleges that the United States, by virtue of these determinations, has breached NAFTA Chapter Eleven by not according it national treatment (Art. 1102) or most-favored nation treatment (Art. 1103); by not according it treatment in accordance with international law (Art. 1105); and by expropriating its investment without compensation (Art. 1110). The notice claims damages of not less than $90 million.
On September 7, 2005 this case was consolidated with Canfor Corp. v. United States of America and Terminal Forest Products Ltd. v. United States of America. For more information on these claims, click here.
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Notice of Arbitration