Ottawa Reviewing Decision on Softwood Lumber Agreement Breach
By 250 News
Wednesday, September 30, 2009 03:56 AM
Prince George, B.C.- Canada has lost a dispute under the Softwood Lumber Agreement.
The breach of the agreement is about timing. The breach is related to the use of the adjustment factor in the calculation of the volume of exports to the United States. Canada applied the adjustment factor to some provinces beginning July 2007, but the London Court of International Arbitration Tribunal ruled it should have been applied as of January 2007.
Canada offered to pay $46.7 million for the breach, but the Tribunal said that wasn’t enough and the amount to be paid is $68.26 million.
The Honourable, Minister of International Trade and Minister for the Asia-Pacific Gateway, Stockwell Day says while Canada still believes the initial offer (46.7million) was fair, there is no way to appeal the decision.
“The Government will comply with the Tribunal’s decision, as we remain committed to the success of the Softwood Lumber Agreement. This agreement has brought stability and has returned nearly $5 billion to the industry. This is a complex matter. We are reviewing the decision and consulting with the provinces to determine how best to move forward.”
The 2006 Softwood Lumber Agreement ended a long-standing dispute that had resulted in years of punishing duties against Canadian exports. Through the Agreement, $4.5 billion US in duties collected by the U.S. was returned to Canadian companies.
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