International trade tribunal rules against Canada

The U.S. can continue to collect collect duties on lumber imports from certain provinces.

That is according to an international trade tribunal ruling today in London, England.

The tribunal said Canada failed to rectify its breach of the agreement through a proposed $36.66-million government-to-government payment.

The LCIA (formerly known as the London Court of International Arbitration) ruled in February that Canada had breached its 2006 softwood lumber trade deal with the U.S. by miscalculating export taxes on lumber from four provinces in the first half of 2007.

The LCIA said Canada should collect a 10% tax on the value of its softwood lumber shipments from Quebec, Ontario, Saskatchewan and Manitoba until $68.26-million was collected.

Canada offered to pay the U.S. government directly, but that approach was rejected by the USTR, which slapped a 10% duty on the imports that it said would stay in place until it collects $54.8-million.

The duty does not affect lumber from British Columbia, which produces about half of Canada's softwood exports to the United States.

Source:

Tribunal rules against Canada in U.S. lumber spat (Reuters)