U.S. and Canada Reach Agreement on Core Terms to End Softwood Lumber Dispute
According to a USTR press release, the U.S. Trade Representative (USTR) Rob Portman and his counterparts in Canada have announced that the two countries have agreed on the core terms of a softwood lumber accord. The press release states that the details of the agreement will be finalized over the next few months.
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Under the terms of the agreement, the United States and Canada will end all litigation over softwood lumber and provide for unrestricted trade in the favorable market conditions the industries have enjoyed for the last several years and which exist today. In a weak lumber market, Canadian exporters will pay export taxes that are adjusted as prices fall. Canadian provinces can also choose to pay lower export taxes by limiting exports below recent levels.
The agreement will also include provisions to address potential Canadian import surges, provide for effective dispute settlement, distribute the duties currently held by the United States, and discipline future subsidies and trade cases.
A portion of the duties will go to the U.S. companies, which will be ending their litigation, and an equal amount will be used to fund meritorious initiatives in the United States.
Antidumping and Countervailing Duty Orders to be Revoked, Etc.
In addition, under the terms of the agreement, all litigation will be terminated and the antidumping (AD) and countervailing (CV) duty orders revoked.
USTR press release (dated 04/27/06) available at http://www.ustr.gov/Document_Library/Press_Releases/2006/April/US,_Canada_Reach_Agreement_on_Lumber_Dispute.html