Is a US Canada Softwood Lumber Trade Deal in Sight?

Optimism is now being expressed by Canada that the potential is there for a deal on softwood lumber trade with the U.S., according to Canada's Foreign Affairs Minister Chrystia Freeland.While a deal could be reached, Freeland cautioned in a teleconference with reporters from the Philippines that it still is not clear if such a deal is at hand. "Having said that, I can't today say whether or not and when such an agreement might be achievable," she said. "At this point, I'm unable to predict when we might reach an agreement."Last week, Canadian ambassador to the U.S. David MacNaughton indicated the two sides were close to a deal that would limit Canada's share of the U.S. market to 30 percent for softwood lumber, noting a debate was still ongoing relative to what would happen if the U.S. was unable to meet its share of the market.The U.S. softwood lumber industry rejected the proposal, saying it was insufficient and criticized Canada for "negotiating in the media" on the matter, according to a statement from U.S.Lumber Coalition spokesman Zoltan van Heyningen. The U.S. will "not accept" a deal with Canada that is at or above their current market share, he noted.Still, Freeland said Canadian officials "including very much me personally" have continued to be "very actively and energetically and substantively engaged with the U.S. on the lumber dispute.The U.S. Commerce Department is currently set to make final determinations on the level of dumping and subsidies in early September unless the statutory deadline is extended.