Canada owes $54 M for softwood

Canada has lost a lengthy legal fight over softwood lumber exports, and now lumber producers from Ontario, Quebec, Manitoba and Saskatchewan will have to cough up $54.8-million (US).

Published: Wednesday, 09/30/2009 12:00 am EDT

Canada has lost a lengthy legal fight over softwood lumber exports, and now lumber producers from Ontario, Quebec, Manitoba and Saskatchewan will have to cough up $54.8-million (US). The London Court of International Arbitration, where the dispute was settled, ruled Canada had breached its 2006 softwood lumber trade deal with the United States by miscalculating export taxes on lumber from these provinces in the first half of 2007. Now, the US will impose a surtax on lumber exports from the four provinces until it has collected the $54.8 million. "Canada failed to cure its breach, and the tribunal has upheld the ability of the United States to take action in response," said US Trade Representative Ronald Kirk.

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