Tribunal rules in favor of the U.S. in lumber dispute

An international trade tribunal has rejected Canada's bid to pay a reduced fine for breach of a softwood lumber trade pact with the United States, trade officials in Washington said Monday. The tribunal said Canada should pay US$68 million as ordered last February instead of US$36.66 million as proposed by Ottawa, the U.S. official said. The tribunal has "rejected Canadian claims that an offer to pay the U.S. government US$36.66 million cured Canada's breach of the Softwood Lumber Agreement," a statement from the U.S. Trade Representative (USTR) office said. "The tribunal's decision confirms the view of the United States that the Softwood Lumber Agreement is enforceable," U.S. Trade Representative Ron Kirk said. "Canada failed to cure its breach, and the tribunal has upheld the ability of the United States to take action in response," said Kirk, hailing the decision as "important" for America's businesses and workers. He said the final resolution of the longstanding dispute between the two neighbors was "an important enforcement action." Canada's Trade Minister Stockwell Day said the government was dismayed by the decision. "We are disappointed that the tribunal did not accept Canada's proposed solution to cure the breach," he said, adding Ottawa felt its offer was "fair." However, with no further route for appeal, he said the Canadian government "will comply with the tribunal's decision." The London Court of International Arbitration (LCIA) ruled in February that Canada had breached the lumber agreement in relation to calculation of export tax on lumber produced by companies in four Canadian provinces.