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Canada loses another round in the softwood lumber dispute

External Reference/Copyright
Issue date: 
January 21st, 2011
Publisher Name: 
Forest Talk
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Timber Procurement


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.

Read more:
Canada loses round in softwood lumber spat (Globe and Mail)
United States Wins Softwood Lumber Arbitration (Office of the U.S. Trade Representative)


Extpub | by Dr. Radut