CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. US Accuses Canada Of Reneging On Lumber Deal

US Accuses Canada Of Reneging On Lumber Deal

by Mike Godfrey, Tax--News.com, Washington

05 April 2007


Senate Finance Committee Chairman Max Baucus (D-Mont.) has welcomed a decision by the United States Trade Representative, Susan Schwab, to request formal consultations with Canada to discuss whether that country is really abiding by the US-Canada Softwood Lumber Agreement.

The agreement, which entered into force on October 12, 2006, was supposed to settle a longstanding and acrimonious dispute regarding imports of Canadian softwood lumber. Questions have already been raised, however, about Canada’s compliance with the agreement.

“Canada struck a deal on lumber and they need to abide by it," Baucus commented. "I’ve urged Ambassador Schwab to push Canada on this, and I commend her for taking this first step of requesting consultations."

The US trade representative owes it to lumber workers in Montana and across the country to make Canada play by the rules,” he added. “Canada can stick by our deal on lumber, or expect to be taken to the woodshed – in this case, international arbitration - over this dispute.”

According to Baucus, multiple concerns have been raised about Canada’s compliance with the softwood lumber agreement. Some provinces, for example, have issued new subsidies to their lumber industries that appear to violate provisions of the agreement. And the Canadian federal government does not appear to have properly implemented the Agreement’s “surge” mechanism, which is designed to increase the tax on softwood lumber imports from Canada when the volume of such imports hits a certain trigger point.

The agreement includes a binding arbitration mechanism to resolve disputes such as this. Either the United States or Canada can initiate arbitration by submitting a written request for consultations. If the United States and Canada cannot resolve the dispute amicably within forty days, either party may refer the matter to the London Court of International Arbitration for binding arbitration proceedings.

The USTR has taken the first step in this process by submitting a written request to Canada for consultations.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »