Canada to Back Softwood Lumber Trade Agreement

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he government of Canada will back an agreement to end a trade dispute with the United States over softwood lumber after it wins industry support for the plan, Bloomberg reported Monday.

The agreement, reached July 1, would allow Canadian lumber companies to recover about $4.3 billion in duties.

Canadian Prime Minister Stephen Harper plans to introduce legislation in September that would allow the provisions of the agreement to go into effect in October, Bloomberg reported.

Claiming that the Canadian government unfairly subsidizes lumber companies, the U.S. in 2002 imposed duties of about 27% on Canadian lumber.

Tariffs today average about 11%. The maximum rate allowed under the new agreement will be 15%, Bloomberg said.

Canada supplies about a third of the U.S. market for softwood — easily-sawed pine, spruce and other wood used in homebuilding.