(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. What other condition must be satisfied in order for the U.S. government to impose an antidumping duty on Canadian lumber imports?

Question

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 prevent foreign companies from selling goods in the United States at a price lower than the fair market value, which can harm domestic producers. Therefore, in this scenario, if U.S. Lumber, Inc., can demonstrate that it is being materially injured by the lower-priced Canadian lumber imports, the U.S. government can impose an antidumping duty. The other conditions, such as material injury to a Canadian lumber producer or both U.S. and Canadian producers, are not necessary for the imposition of an antidumping duty.

(Scenario: Far North Canadian Lumber) Suppose That Far North Canadian