Negotiations between the US and Canada on the protracted softwood lumber dispute have broken off after the two sides failed to agree on key issues.
Pierre Pettigrew, Canada’s international trade minister, said two thorny issues are a possible export tax on Canadian lumber until a final deal is reached and whether the US will return the US$650m already collected in softwood lumber duties.
He described demands by US softwood producers as “excessive” but said contact with the Americans will continue.
In the meantime, Canada is pursuing its challenges to the US duties with the World Trade Organisation and under the North American Free Trade Agreement.
