l offers mixed decision on Canadian softwood lumber dispute

The tribunal's decision regarding the calculation of the trigger volumes for the Western Canadian provinces is not consistent with the balance we negotiated under the SLA, said Gretchen Hamel, spokeswoman for the Office of the U.S. Trade Representative, in a statement Tuesday. While we remain committed to the long-term goal of market-based trade in lumber, we will be consulting with our stakeholders on options going forward.

Under the SLA, Canada agreed to impose export measures on Canadian exports of softwood lumber products to the United States. When the prevailing monthly price of lumber, determined by the agreement, is above $355 per 1,000 board feet, Canadian lumber exports are unrestricted. When prices are at or below $355 per 1,000 board feet, each Canadian exporting region has chosen to be subject to either an export tax with a soft volume cap or a lower export tax with hard volume cap or volume restraint. The measures become more stringent as the market price of lumber declines, the USTR explained.

Today, the prevailing monthly price of lumber is $243 per 1,000 board feet and Canada's western provinces are subject to the maximum export charge of 15 percent, while the eastern provinces face the most stringent volume restraints provided under the SLA, in addition to an export charge of 5 percent.