Washington, September 3 -- For the third time, a North American Free Trade Agreement panel has ruled that the United States failed to prove its softwood lumber industry is harmed by Canadian imports.
If enforced, the decision could reduce the cost of engineered wood flooring in the US.
In the decision late Tuesday, the five-member NAFTA panel directed the U.S. International Trade Commission to rescind its justification for the average 27.2 percent tariffs on Canadian lumber since May 2002.
The panel said the ITC had presented no new evidence to support earlier rejected evidence that Canadian imports harmed U.S. producers.
The commission ''is simply unwilling to accept this panel's review authority,'' according to the NAFTA panel.
The National Association of Home Builders applauded the ruling, calling it a victory for American homebuyers squeezed by lumber prices nearing record levels. The home builders group called on the Bush administration not to appeal the ruling.
In 2002, the United States imported about a third of its supply of softwood lumber - nearly $6 billion - from Canada.
