US and Canada reach agreement

The deal, first announced in April, was signed by US trade representative Susan Schwab and Canadian counterpart David Emerson during World Trade Organisation talks in Geneva.

President George Bush said he was “pleased” the final text had been agreed.

The agreement will undergo a legal review in August, while the Canadian government has to approve a new export charge system to replace the current US duties imposed on Canadian softwood. Implementation is expected in September.

Canada will impose duties on its lumber exports to America if prices fall below a certain level. In return, US$4bn of the US$5bn worth of duties collected by the US government will be returned to Canadian lumber producers.

The Coalition for Fair Lumber Imports, the American timber industry group which has led the campaign against what it calls unfair subsidised Canadian timber, described the agreement as a “critical step” in resolving the dispute. He said the final text represented a compromise for both countries

The deal will see the US and Canada end all legal action relating to the dispute.