:: rawblogXport ::

:: Sunday, December 07, 2003 ::

U.S. government, lumber industry agree to terms for ending softwood dispute By STEVE MERTL
A spokesman for International Trade Minister Pierre Pettigrew would not confirm a deal was in the works.

'Discussions have progressed this week but we're not at a point where we have an agreement,' said Sebastien Theberge. 'The discussions and consultations will continue over the next few days.'

But Canadian industry sources said a deal hammered out early Saturday morning would lift punishing softwood duties and give lumber exporters duty-free access to the U.S. market up to a level of 31.5 per cent. Above that, a levy of $200 US per thousand board feet of lumber would kick in.

The complicated arrangement, which would be retroactive to Saturday once a final deal was signed, would run for three years but could be extended on an annual basis after that, the source said.

After three years, Canadian provinces that make their forest policies more market-oriented and pass a review by the U.S. Department of Commerce could increase their duty-free share by five per cent in the fourth and fifth year and 7.5 per cent after that.

And if after three years the provinces that make up 75 per cent of softwood exports pass the U.S. Commerce Department's so-called changed-circumstances review, then there would be total free trade in softwood for companies in those provinces.

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