Canada, U.S. softwood trade dispute softens

Canada, U.S. softwood trade dispute softens    Canadian International Trade Minister Peter Van Loan and U.S. Trade Representative Ron Kirk on Thursday agreed to transfer to Canada the collection of a 10 percent customs duty imposed on softwood lumber products imported into the United States from the Canadian provinces of Ontario, Quebec, Manitoba and Saskatchewan.
   U.S. Customs and Border Protection began collecting the duty on April 15, 2009. The 10 percent ad valorem duty was directed by the Office of the U.S. Trade Representative under Section 301 of the Trade Act.
   On Feb. 26, 2009, a tribunal found that Canada had breached the Softwood Lumber Agreement by failing to calculate quotas properly during the first six months of 2007.
   Starting Sept. 1, 2010, Canada will begin collecting the duty from the four provinces. The revenue collected from the tax will stay in Canada and be distributed back to the four provinces, the Canadian International Trade Ministry said.