The Coalition for Fair Lumber Imports said Canada’s plan to offer further loan guarantees was designed as a retaliatory move should the US appeal a recent decision by a North American Free Trade Agreement panel in the ongoing softwood lumber dispute.
Canada has so far announced US$3.4bn worth of subsidies since last September to help its forest industry, whose softwood exports to to America have been hit by US duties.
The coalition criticised the timing of the subsidy plan, at a time when US and Canadian representatives are discussing a return to the negotiating table.