Canadian lumber industry groups are to receive a C$20m cash injection from the federal government to help pay legal costs in the long-running softwood dispute with America.

The government’s international trade minister Jim Peterson said the government supports the industry’s efforts to defend the country’s interests.

But critics have said the money is only half what the industry needs in the legal fight.

Canadian softwood lumber exporters have paid more than C$4.5bn in duties since 2002.

Meanwhile, Canadian and American lumber executives met in Chicago this month to examine a Canadian proposal for re-starting talks. A further meeting will take place on May 3.