Canada loses another round in the softwood lumber dispute
The London Court of International Arbitration tribunal has ruled that Canada breached its obligations under the anti-circumvention provisions of the Softwood Lumber Agreement and determined compensatory export measures to remedy the breach.
At issue are provincial assistance programs put in place by Ontario and Quebec to assist their sawmills.
The tribunal has ruled that Canada has 30 days to fix the issue by placing additional charges on exports of softwood lumber to the United States originating in Quebec and Ontario. If Canada does not, the U.S. is authorized under the Softwood Lumber Agreement to impose additional import duties on softwood lumber from Canada.
This is Canada’s second loss at the London Court of International Arbitration. In 2007, Canada lost another case concerning export quotas from Ontario and Quebec. So far, exporters have paid $68.26 million in extra export taxes as a result of that case.