Canadian Offer to Remedy Lumber Pact Violation Rejected

(World Trade Interactive)

U.S. Trade Representative Ron Kirk announced April 3 that the U.S. will not accept an offer by Canada that seeks to remedy a violation of the 2006 Softwood Lumber Agreement. According to a USTR press release, an international tribunal determined that Canada must collect an additional 10% export charge on softwood lumber shipments from its eastern provinces until about $54.8 million has been collected.

Because Canada did not take this action by the March 28 deadline, the USTR states, the U.S. is now within its rights to impose customs duties on softwood lumber imports from Canada in an amount not to exceed the additional export charges. However, the USTR is still reviewing its options and plans to decide soon on an appropriate course of action.