The US says it will appeal a North American Free Trade Agreement (NAFTA) panel decision which ruled that American duties on Canadian softwood lumber imports were unfair.
A last ditch “extraordinary challenge” to the NAFTA ruling is expected to be filed during November, with a decision not expected before next spring.
If the appeal loses, the US would be forced to lift the duties and hand back more than C$2.6m already collected.
The US believes the NAFTA panel overstepped its authority when it ordered the American-based International Trade Commission to find that Canadian imports were no threat to US timber producers.