U.S., Canada step closer to resolving softwood lumber trade dispute

U.S., Canada step closer to resolving softwood lumber trade dispute The U.S. and Canadian governments have entered an agreement that could lead to the end of a 20-year-old trade dispute over softwood lumber.
   Details of the agreement, which was reached on April 27, will be finalized over the next couple of months, said the Office of the U.S. Trade Representative in a statement.
   “After multiple lawsuits without resolution, we are now close to achieving what many thought would never happen,” U.S. Trade Representative Rob Portman said. “There are still a few details to be finalized, but we’ve worked hard to shape a smart, market-based solution.”
   The USTR noted that under terms of the agreement the United States and Canada will end all litigation over softwood lumber and provide for unrestricted trade in the favorable market conditions the industries have enjoyed for the last several years and which exist today. In a sagging lumber market, Canadian exporters will pay export taxes that are adjusted as prices fall. Canadian provinces can also choose to pay lower export taxes by limiting exports below recent levels.
   The agreement also includes provisions to address potential Canadian import surges, provides for dispute settlement, disperses duties currently held by the United States, and reins in future subsidies and trade cases.
   A portion of the duties will go to the U.S. companies, which will be ending their litigation, and an equal amount will be used to fund “meritorious initiatives” in the United States, the USTR said.
   The U.S. lumber industry applauded the Bush administration for reaching the agreement.
   “We understand that there have been very tough, marathon negotiations over the last two weeks and the determination and skill of the U.S. negotiators were crucial to arriving at a settlement that is balanced and fair,” said Steve Swanson, chairman of the Washington-based Coalition for Fair Lumber Imports, in a statement.