The US and Canada recently met to discuss the issues raised regarding the SLA, with Canada hoping to carry out further talks in order to continue on a “constructive path”.
However, Random Lengths, the weekly report on the North American forest products markets, has said that US trade officials are expected to request a ruling from the London Court of International Arbitration in the coming weeks.
Due to the criteria set out in the SLA, it is expected that a ruling would be made early in 2008, although this still relies on the US pursuing its case through arbitration.
Moreover, Canada could face having to implement higher export taxes or seeing quotas reduced, should arbitrators find that the country was in breach of the SLA.
