March 5, 2008
Arbitration panel splits on lumber decision
An arbitration panel yesterday passed down a split decision on Canada's alleged violation of a 2006 softwood lumber trade agreement with the United States.
The London Court of International Arbitration yesterday ruled that Canada's softwood exports to the United States from Alberta and British Columbia did not violate the trade pact, but that imports from Quebec, Ontario, Manitoba and Saskatchewan, which used a quota system rather than an export tax, did violate the agreement, according to the Associated Press. Canadian officials said the London court will likely reduce quotas for the four provinces in a later penalization judgment, the AP said.
The seven-year trade pact was supposed to prevent Canadian sawmills with healthy government subsidies from flooding the U.S. market with less expensive softwood lumber, mostly pine, spruce and fir. But U.S. officials complained Canada over-supplied lumber in 2007, hurting an already weakened industry.
The London Court of International Arbitration yesterday ruled that Canada's softwood exports to the United States from Alberta and British Columbia did not violate the trade pact, but that imports from Quebec, Ontario, Manitoba and Saskatchewan, which used a quota system rather than an export tax, did violate the agreement, according to the Associated Press. Canadian officials said the London court will likely reduce quotas for the four provinces in a later penalization judgment, the AP said.
The seven-year trade pact was supposed to prevent Canadian sawmills with healthy government subsidies from flooding the U.S. market with less expensive softwood lumber, mostly pine, spruce and fir. But U.S. officials complained Canada over-supplied lumber in 2007, hurting an already weakened industry.
Mainebiz web partners
Most Recent
Most Recent
Comments