The deal, which could be extended for a further two years, gives Canadian producers unrestricted access to the US under current market conditions.
US$4bn in collected duties will be returned to Canadian firms, but Canada’s government is allowing the US to keep about US$1bn of the duties it levied on Canadian firms despite Ottawa winning legal battles which should have voided the dispute and refunded all levies.
The deal has been called a compromise that ends uncertainty in some quarters, while others believe it is a betrayal of Canadian interests that will compromise Canadian industry for ever.
It could take up to three months to finalise the agreement.
