Statement from Minister Emerson on Softwood Lumber Agreement

News Release

August 7, 2007
No. 108
The Honourable David Emerson, Minister of International Trade, today issued the
following statement in response to the announcement by the U.S. of its intention to
request arbitration with Canada under the Softwood Lumber Agreement, which followed
consultations undertaken by both countries on April 19, 2007:
“This announcement stems from differing interpretations of the Softwood Lumber
Agreement by Canada and the U.S. Despite extensive talks with industry, we were not
able to resolve these issues during the consultation phase.
“We will continue to work closely with the provinces and industry to defend Canada’s
interests throughout the arbitration process.
“Since its implementation in October 2006, the Softwood Lumber Agreement has
worked well—providing certainty for industry plus returning over $5 billion in duties to
Canadian softwood lumber producers. Different points of view may arise from time to
time in administering such a complex agreement. It was for this reason that we included
a dispute settlement mechanism in the agreement to facilitate the resolution of
differences.
“We will work closely with the United States to resolve these matters. Canada remains
committed to this agreement and its continued effective operation, and will abide by the
outcome of the dispute settlement process. It is this spirit of goodwill and cooperation
that will allow us to continue to build a stronger, more competitive North America.”
The U.S. announcement relates to a technical interpretation of the Softwood Lumber
Agreement, and a disagreement with respect to certain provincial programs. Following
the filing of a formal request for arbitration, each party will have 30 days to nominate
one arbitrator. Both arbitrators will then jointly choose a tribunal chair before
commencing the arbitration process, which will be conducted under the auspices of the
London Court of International Arbitration (LCIA). The agreement calls on the tribunal to
endeavour to issue its final and binding decision no later than 180 days after the LCIA
appoints the tribunal.
The Softwood Lumber Agreement came into force on October 12, 2006. The
agreement creates a predictable trade environment for Canadian producers. It is a
seven-year agreement with an option to renew for two additional years.
To read the original Softwood Lumber Agreement, visit
http://www.international.gc.ca/eicb/softwood/SLA-main-en.asp.
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For further information, media representatives may contact:
Jennifer Chiu
Press Secretary
Office of the Minister of International Trade and Minister for the Pacific Gateway and
the Vancouver-Whistler Olympics
613-992-7332
Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
http://www.international.gc.ca

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Date modified:: 2007-08-07

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Statement from Minister Emerson on Softwood Lumber Agreement

News Release

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