Canada May Sue US If Softwood Lumber Talks Collapse

Canada’s Ambassador to the U.S., David MacNaughton, said last week there's a willingness in Canada to sue the U.S. if trade talks over softwood lumber fail to reach an agreement.The U.S. has “mischaracterized” what Canada has proposed in terms of defined market share, MacNaughton said. The only qualification Canada wants for defined market share is that the country can supply excess lumber to the U.S. in the event that American suppliers cannot meet domestic demand fully, he argued."What we can’t understand is why is it that some elements of the U.S. lumber industry would rather see imports from countries like Russia rather than their closest ally and friend, Canada,' MacNaughton said. "We’re going to try really hard in the next little while to get a fair and balanced agreement. If that is not possible, we have all agreed that we will take all necessary steps to litigate this matter."The U.S. is importing more softwood lumber after imposing tariffs on Canadian supplies, making them more expensive. Russian shipments are 42% higher in 2017, according to U.S. government data. In October, Chrystia Freeland, Canada’s trade minister, said the country will bring the U.S. tariffs before the World Trade Organization (WTO) if negotiations fail.The U.S. is Canada’s top buyer of softwood lumber. The industry provides jobs in many Canadian communities, and often the sawmill is the only company in many of those towns, MacNaughton noted.