The rollercoaster ride of the Canada-US softwood lumber dispute took another dip after the US upped its demands at talks in Washington.

The package to try and resolve the argument includes a lumber export tax to replace US duties – previously accepted by Canada. However, that tax has now risen to a level unacceptable to Canadian lumber producers.

The US proposal also puts a limit on lumber exports from British Columbia and contains a refusal to budge on a previous demand to keep about half the US$5bn in lumber duties already paid by Canadian producers.

There are tentative plans for another meeting in Ottowa in August after both sides have had a chance to consult with their respective stakeholders.