The latest proposed settlement to the softwood lumber dispute between the US and Canada appears to have foundered after only a few days on the table.
The US-based Coalition for Fair Lumber Imports rejected lumber quota figures agreed by trade officials from the two countries. It wants Canada’s duty-free lumber export quota lowered from the proposed 30% to 28%, with the maximum export levy kicking in at 30.5% instead of 32.5%.
Canadian negotiators broke off discussions with their US counterparts following the coalition’s announcement. It is the third time in two years that hopes for a settlement have fallen.
Some industry observers believe the US lumber industry may have miscalculated in its rejection of the draft solution. One report surfacing in the Canadian press has quoted the coalition as only wanting minor amendments and saying the draft could form the basis for a satisfactory settlement.
An earlier effort to break the deadlock stalled last year, leading to the introduction of duties on Canadian imports.
