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Countervailing ("CVD") and antidumping ("ADD") duty dispute
 12 Months Ended
Dec. 31, 2024
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]  
Countervailing ("CVD") and antidumping ("ADD") duty dispute Countervailing (“CVD”) and antidumping (“ADD”) duty disputeOn November 25, 2016, a coalition of U.S. lumber producers petitioned the U.S. Department of Commerce (“USDOC”) and the U.S. International Trade Commission (“USITC”) to investigate alleged subsidies to Canadian softwood lumber producers and levy CVD and ADD duties against Canadian softwood lumber imports. The USDOC chose and continues to choose us as a “mandatory respondent” to both the countervailing and antidumping investigations, and as a result, we have received unique company-specific rates
Accounting policies
The CVD and ADD rates apply retroactively for each period of investigation (“POI”). We record CVD as export duty expense at the cash deposit rate until an Administrative Review (“AR”) finalizes a new applicable rate for each POI. We record ADD as export duty expense by estimating the rate to be applied for each POI by using our actual results and a similar calculation methodology as the USDOC and adjust when an AR finalizes a new applicable rate for each POI. The difference between the cumulative cash deposits paid and cumulative export duty expense recognized for each POI is recorded on our balance sheet as export duty deposits receivable or payable.
The difference between the cash deposit amount and the amount that would have been due based on the final AR rate will incur interest based on the U.S. federally published interest rate. We record interest income on our duty deposits receivable, net of any interest expense on our duty deposits payable, based on this rate.
Developments in CVD and ADD rates
We began paying CVD and ADD duties in 2017 based on the determination of duties payable by the USDOC. The CVD and ADD cash deposit rates are updated upon the finalization of the USDOC’s Administrative Review (“AR”) process for each Period of Inquiry (“POI”), as summarized in the tables below.
On March 5, 2024, the USDOC initiated AR6 POI covering the 2023 calendar year. West Fraser was selected as a mandatory respondent, which will result in West Fraser continuing to be subject to a company-specific rate.
On September 24, 2024, the USDOC finalized the duty rate for AR5, resulting in the recognition of an export duty expense of $32 million plus interest expense in earnings, an increase in export duty deposits payable, and a decrease in export duty deposit receivable.
On December 9, 2024, the USDOC issued a tolling notice extending the deadlines for certain ADD and CVD proceedings, including softwood lumber, of up to 90 days. This extension affects the AR6 preliminary and final determination deadlines for both ADD and CVD cases. The preliminary determination decision for AR6 ADD and CVD were initially anticipated to be published February 6, 2025. The preliminary determination decision for AR6 ADD is now anticipated to be published February 20, 2025, and the preliminary determination decision for AR6 CVD is now anticipated to be published May 7, 2025.
The respective Cash Deposit Rates, the AR POI Final Rate and the West Fraser Estimated ADD Rate for each period are as follows:
Effective dates for CVDCash Deposit
Rate		AR POI Final Rate
AR1 POI1,2
April 28, 2017 - August 24, 201724.12 %6.76 %
August 25, 2017 - December 27, 2017— %— %
December 28, 2017 - December 31, 201717.99 %6.76 %
January 1, 2018 - December 31, 201817.99 %7.57 %
AR2 POI3
January 1, 2019 - December 31, 201917.99 %5.08 %
AR3 POI4
January 1, 2020 - November 30, 202017.99 %3.62 %
December 1, 2020 - December 31, 20207.57 %3.62 %
AR4 POI5
January 1, 2021 - December 1, 20217.57 %2.19 %
December 2, 2021 - December 31, 2021
5.06 %2.19 %
AR5 POI6
January 1, 2022 – January 9, 20225.06 %6.85 %
January 10, 2022 – August 8, 20225.08 %6.85 %
August 9, 2022 - December 31, 20223.62 %6.85 %
AR6 POI7
January 1, 2023 - July 31, 20233.62 %n/a
August 1, 2023 - December 31, 20232.19 %n/a
AR7 POI8
January 1, 2024 - August 18, 20242.19 %n/a
August 19, 2024 - December 31, 20246.85 %n/a
1.On April 24, 2017, the USDOC issued its preliminary rate in the CVD investigation. The requirement that we make cash deposits for CVD was suspended on August 24, 2017, until the USDOC published the revised rate.
2.On November 24, 2020, the USDOC issued the final CVD rate for the AR1 POI.
3.On November 24, 2021, the USDOC issued the final CVD rate for the AR2 POI. On January 10, 2022, the USDOC amended the final CVD rate for the AR2 POI from 5.06% to 5.08% for ministerial errors. This table only reflects the final rate.
4.On August 4, 2022, the USDOC issued the final CVD rate for the AR3 POI.
5.On August 1, 2023, the USDOC issued the final CVD rate for the AR4 POI.
6.On August 19, 2024, the USDOC Issued the final CVD rate for the AR5 POI.
7.The CVD rate for the AR6 POI will be adjusted when AR6 is complete and the USDOC finalizes the rate, which is not expected until 2025.
8.The CVD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026.
Effective dates for ADDCash Deposit
Rate		AR POI Final RateWest Fraser
Estimated
Rate
AR1 POI1,2
June 30, 2017 - December 3, 2017
6.76 %1.40 %1.46 %
December 4, 2017 - December 31, 2017
5.57 %1.40 %1.46 %
January 1, 2018 - December 31, 20185.57 %1.40 %1.46 %
AR2 POI3
January 1, 2019 - December 31, 20195.57 %6.06 %4.65 %
AR3 POI4
January 1, 2020 - November 29, 20205.57 %4.63 %3.40 %
November 30, 2020 - December 31, 2020
1.40 %4.63 %3.40 %
AR4 POI5
January 1, 2021 - December 1, 20211.40 %7.06 %6.80 %
December 2, 2021 - December 31, 2021
6.06 %7.06 %6.80 %
AR5 POI6
January 1, 2022 - August 8, 20226.06 %
5.04%
4.52 %
August 9, 2022 - December 31, 20224.63 %
5.04%
4.52 %
AR6 POI7
January 1, 2023 - July 31, 20234.63 %
n/a
8.84 %
August 1, 2023 - December 31, 20237.06 %
n/a
8.84 %
AR7 POI8
January 1, 2024 - August 18, 20247.06 %
n/a
2.58 %
August 19, 2024 - December 31, 20245.04 %
n/a
2.58 %
1.On June 26, 2017, the USDOC issued its preliminary rate in the ADD investigation effective June 30, 2017.
2.On November 24, 2020, the USDOC issued the final ADD rate for the AR1 POI.
3.On November 24, 2021, the USDOC issued the final ADD rate for the AR2 POI.
4.On August 4, 2022, the USDOC issued the final ADD rate for the AR3 POI
5.On July 31, 2023, the USDOC issued the final ADD rate for the AR4 POI. On September 7, 2023, the USDOC amended the final ADD rate for the AR4 POI from 6.96% to 7.06% for ministerial errors. This table only reflects the final rate.
6.On August 19, 2024, the USDOC Issued the final ADD rate for the AR5 POI. An amended ADD rate was issued on September 24, 2024, and was retroactively applied to August 19, 2024.
7.The ADD rate for the AR6 POI will be adjusted when AR6 is complete and the USDOC finalizes the rate, which is not expected until 2025.
8.The ADD rate for the AR7 POI will be adjusted when AR7 is complete and the USDOC finalizes the rate, which is not expected until 2026.
Impact on results
The following table reconciles our cash deposits paid during the year to the amount recorded in our statements of earnings:
($ millions)20242023
Cash deposits1
(62)(53)
Adjust to West Fraser Estimated ADD rate2
22 (17)
Export duties, net
(40)(70)
Duty recovery attributable to AR43
— 62 
Duty expense attributable to AR54
(32)— 
Export duty (expense) recovery(72)(8)
Net interest income on export duty deposits19 27 
1.Represents combined CVD and ADD cash deposit rate of 8.25% from January 1, 2023 to July 31, 2023, 9.25% from August 1, 2023 to December 31, 2023, 9.25% from January 1, 2024 to August 18, 2024 and 11.89% from August 19, 2024 to December 31, 2024.
2.Represents adjustment to the West Fraser Estimated ADD rate of 2.58% for 2024 and 8.84% for 2023.
3.$62 million represents the duty recovery attributable to the finalization of the AR4 duty rates for the 2021 POI. The final CVD rate was 2.19% and the final ADD rate was 7.06% for AR4.
4.$32 million represents the duty expense attributable to the finalization of AR5 duty rates for the 2022 POI. The final CVD rate was 6.85% and the final ADD rate was 5.04% for AR5.
As of December 31, 2024, export duties paid and payable on deposit with the USDOC were $898 million (December 31, 2023 - $836 million).
Impact on balance sheet
Each POI is subject to independent administrative review by the USDOC, and the results of each POI may not be offset but the results within a POI in respect of ADD and CVD may be offset.
Export duty deposits receivable is represented by:
Export duty deposits receivable20242023
Beginning of year $377 $354 
Export duty deposit receivable on adjustment to estimated ADD rate22 — 
Export duty deposit receivable on adjustment to finalized rates(16)— 
Interest income recognized on duty deposits receivable 25 23 
End of year$408 $377 
Export duties payable is represented by:
Export duties payable20242023
Beginning of year$24 $73 
Export duty deposit payable on adjustment to finalized rates15 (62)
Export duty deposit payable on adjustment to estimated ADD rate— 17 
Interest expense (income) recognized on export duties payable 6 (4)
End of year$46 $24 
Appeals
On May 22, 2020, the North American Free Trade Agreement (“NAFTA”) panel issued its final decision on “Injury”. The NAFTA panel rejected the Canadian parties’ arguments and upheld the USITC remand determination in its entirety.
On August 28, 2020, the World Trade Organization’s (“WTO”) dispute-resolution panel ruled unanimously that U.S. countervailing duties against Canadian softwood lumber are inconsistent with the WTO obligations of the United States.
The decision confirmed that Canada does not subsidize its softwood lumber industry. On September 28, 2020, the U.S. announced that it would appeal the WTO panel’s decision.
Under U.S. trade law, the International Trade Commission (“ITC”) must review antidumping and countervailing orders every 5 years from the date of issuance. This process is referred to as a "Sunset Review". On November 30, 2023, the ITC voted to maintain the ADD and CVD orders on softwood lumber from Canada on the grounds that the revocation would likely lead to the continuation or recurrence of material injury to the U.S. domestic industry within a reasonably foreseeable time.
The softwood lumber case will continue to be subject to NAFTA or the new Canada-United States-Mexico Agreement (“CUSMA”), WTO dispute resolution processes, and litigation in the U.S. In the past, long periods of litigation have led to negotiated settlements and duty deposit refunds. In the interim, duties remain subject to the USDOC AR process, which results in an annual adjustment of duty deposit rates.
Notwithstanding the deposit rates assigned under the investigations, our final liability for CVD and ADD will not be determined until each annual administrative review process is complete and related appeal processes are concluded.