Canada has scored points over the US in the softwood lumber dispute after the World Trade Organisation (WTO) took its side against America’s protectionist ‘Byrd amendment’ policy.
The WTO, meeting in Geneva on July 17, signalled its agreement with the objections of Canada and a host of other countries to the policy.
The Byrd amendment allows the US government to redistribute countervailing and anti-dumping duties collected from Canadian lumber firms to US lumber producers.
Canadian trade minister Pierre Pettigrew described the US policy as “dirty tricks”, while lumber producers in British Columbia estimate it could siphon off more than C$2bn from their industry every year.
A final report by the WTO is due in the autumn but US appeals may prolong a decision into next year.
The WTO will make a separate ruling on a Canadian challenge to the duties on July 26.
