Canada wins latest round in trade dispute

Canadian forest products companies are celebrating after winning the latest round in the long-fought trade dispute with the USs.

Trade appeal agency NAFTA ruled against the American industry’s claim to preserve tariff protection – given Canadian firms access to the US$4bn of penalty duties held in a Washington trust account.

Alberta companies alone expect to collect over US$400m, refunds for punitive duties levied against Candian exports since 2001.

The US industry has claimed Canadian producers are unfairly subsidised through low fees paid to governments for timber – hence its imposition of penalties.

“It is our definite hope this brings an end to this latest round of softwood lumber trade wars,” said Parker Hogan, public affairs director of the Alberta Forest Products Association.

Canadian trade minister Jim Petersen said he would continue to press Washington hard to “honour their international trade obligations” drop its duties and return the billions already collected.

But he acknowledged the fight wasn’t over, noting Canada had already sought world trade body permission to fight back with sanctions on some US exports.

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