Washington accuses Ottawa of violating 2006 softwood agreement
D.C., Washington, United States (AHN) – Washington accused Ottawa of violating the 2006 softwood agreement, claiming that British Columbia is selling timber at artificially low prices.
Seeking a resolution, U.S. Trade Representative Ron Kirk asked the London Court of International Arbitration to make a ruling in favor of the U.S. and to fine Canada up to $500 million.
The two countries tried to solve the problem through formal consultations in October, but failed to reach an agreement.
Washington said B.C. increased the amount of timber it is selling by placing a price tag of 25 cents a cubic meter for the mountain pine beetle-infested wood, which gave lumber producers in the Canadian province unfair advantage over their American competitors. The relatively easy-to-saw wood is used mainly for home construction.
Canadian Trade Minister Peter Van Loan denied the U.S. allegation. B.C. Forestry Minister Pat Bell said prices were reduced to clear the province of dead and beetle-infested wood, estimated to have affected 16.3 million hectares of BC’s forests.
The U.S. acknowledged it was aware that when the 2006 softwood lumber agreement was inked, BC had some pine beetle-damaged timber, but questioned the province’s classifying the wood as less desirable grade 4 (economy) lumber.
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