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The Effect of the Softwood Lumber Agreement 2006

November-24-2006

Summary

The Softwood Lumber Agreement between the Governments of Canada and the United States entered into on September 12, 2006 (“SLA 2006”) ended the most recent round of softwood trade actions that commenced on April 2, 2001 when the U.S. industry filed subsidy and dumping petitions with the U.S. Department of Commerce (“Commerce”).  While several attempts were made to settle these trade actions before the SLA 2006, the Canadian Government and the Canadian softwood lumber producers (collectively the “Canadian Parties”) fully exercised their rights under the binational panel process provided for in Chapter Nineteen of the North American Free Trade Agreement (“NAFTA”).  The Canadian Government also initiated complaints under the WTO dispute settlement process.

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