Pulp and Paper Canada

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Domtar against Softwood Lumber deal


December 9, 2003
By Pulp & Paper Canada

Domtar Inc. announced it will recommend that the Government of Canada does not proceed with the proposed U.S. agree…

Domtar Inc. announced it will recommend that the Government of Canada does not proceed with the proposed U.S. agreement on softwood lumber.
Domtar believes that the proposal provides no clear path to free trade and does not take into account WTO and NAFTA rulings.
Domtar has suggested that the Government of Canada enter into a five-year agreement with the United States that would limit Canadian access to the U.S. market to 32%, except for small dimension lumber. Canadian lumber should also gain greater access to the U.S. market when prices reach a certain level to prevent market share losses to offshore manufacturers. Finally, consistent with NAFTA rulings, all cash deposits would be returned to Canadian companies. On this last point, Domtar supports the implementation of the decision rendered by the World Trade Organization, which has deemed the Byrd Amendment unacceptable as it would allow U.S. manufacturers to receive directly cash deposits made by Canadian companies.

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