Even as Canada declares victory in a major softwood lumber dispute with the United States, the organization representing British Columbia’s forest industry doesn’t expect the persistent American lumber lobby to reduce its competitive tactics.
An international tribunal convened under the 2006 softwood lumber agreement ruled Wednesday that Canada did not circumvent the deal by shipping large quantities of pine beetle-infested lumber south of the border.
The United States government argued that B.C. mills had an unfair advantage in softwood sales because they’ve been selling logs made from the destroyed trees at lower prices.
The three-member panel at the London Court of International Arbitration ruled in favor of Canada, though the details of the ruling will remain confidential for 10 days.
If Canada lost the arbitration, financial penalties could have totaled as high as $380 million. “When you dodge that bullet, you obviously feel pretty good,” said John Allan, president of the B.C. Lumber Trade Council, which represents 85% of the province’s lumber producers.
From Metro News Canada: http://metronews.ca/news/canada/302143/canada-claims-victory-in-softwood-dispute/