Canada wins another round in softwood fight

OTTAWA, (April 29, 2004) — NAFTA officials announced today that U.S. lumber producers have not suffered any real injury by Canadian exports — a much anticipated decision Canadian officials say is a clear victory in the ongoing softwood lumber dispute.

The NAFTA dispute resolution panel’s ruling knocks the weight out of the U.S. case for imposing a 27 per cent tariff on Canadian softwood exports. While the ruling will likely be challenged by the U.S., Canadian producers and exporters are hoping it will help speed up a resolution in the three year-old dispute.

U.S. president George Bush and Canadian Prime Minister Paul Martin are expected to discuss the issue at their summit today.

While softwood producers in Alberta and Ontario have been affected, British Columbia and Quebec have been hurt the most.

Canada won the first round in this trade war last year, when a NAFTA panel ruled Washington had failed to prove its case to impose tariffs.

— from Canadian Press