SCENARIO: FAR NORTH CANADIAN LUMBER
Suppose that Far North Canadian Lumber, Ltd., sells lumber in
Canada at a price of $1,000 per 1,000 board feet and exports the
Same lumber to the United States at a price of $600 per 1,000 board
Feet.U.S.Lumber, Inc., produces and sells lumber for $700 per 1,000
Board feet in the United States.
Reference: Ref 910
(Scenario: Far North Canadian Lumber) What other condition must be
Satisfied in order for the U.S.government to impose an antidumping
Duty on Canadian lumber imports?

Question

SCENARIO: FAR NORTH CANADIAN LUMBER
Suppose that Far North Canadian Lumber, Ltd., sells lumber in
Canada at a price of $1,000 per 1,000 board feet and exports the
Same lumber to the United States at a price of $600 per 1,000 board
Feet.U.S.Lumber, Inc., produces and sells lumber for $700 per 1,000
Board feet in the United States.
Reference: Ref 9­10
(Scenario: Far North Canadian Lumber) What other condition must be
Satisfied in order for the U.S.government to impose an antidumping
Duty on Canadian lumber imports?

Quizplus · Accepted Answer

In order for the U.S. government to impose an antidumping duty on Canadian lumber imports, there must be material injury to a U.S. lumber producer. This is because the purpose of an antidumping duty is to protect domestic industries from unfair competition from foreign producers who sell their products at a lower price than domestic producers can compete with, causing material injury to the domestic industry. Therefore, the U.S. government would need to determine that U.S. Lumber, Inc. is being materially injured by the lower-priced Canadian imports in order to impose an antidumping duty.