Sawmill operators penalized for breaching softwood lumber agreement
March 2, 2009 By Pulp & Paper Canada
An international tribunal has ruled that Canada breached the 2006 Softwood Lumber Agreement by failing to calculate…
An international tribunal has ruled that Canada breached the 2006 Softwood Lumber Agreement by failing to calculate quotas properly during the first six months of 2007, according to the United States Trade Representative.
The London Court of International Arbitration has ordered sawmills in four provinces to pay an additional 10% export tax until a $68 million penalty has been met. The penalty applies to sawmills in Quebec, Ontario, Manitoba, and Saskatchewan.
John Allan, secretary of the Canadian Lumber Trade Alliance, told the Vancouver Sun that the ruling is final and cannot be appealed. Allan said the Canadian government has 30 days to begin collecting the penalty.
Acting U.S. Trade Representative Peter Allgeier is pleased with the tribunal’s decision. “It confirms the view of the United States that the SLA is an enforceable agreement.”
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