Back to Softwood Lumber Home Page

 

 

 

 

Updated: October 26, 2006

Negotiated Settlement

Current Status:

On April 27, 2006, Canada and the United States agreed to a Basic Terms sheet laying out the framework for an agreement.

 

On July 1, 2006, Minister Emerson and United States Trade Representative Schwab initialled a final legal text in Geneva.

 

On August 16, 2006, Premier Gordon Campbell pledged the government of British Columbia's support for the 2006 softwood lumber agreement (details).

 

For more information about the new Softwood Agreement please check our main Softwood Lumber webpage.

Chronology of Events Leading to the Current Status:

·         July 1 2006:  Canada and the United States initial a final agreed text.

·         April 27 2006:  Canada and the United States sign a basic terms agreement.

·         July 2005:  The United States tabled an export tax based proposal for settlement.

·         March 2005: The Canadian government presented an initial proposal for a negotiated solution to the US (Details). 

·         March 2005:  The Federal Government named former Bombardier chief Paul Tellier and Gordon Ritchie, one of the architects of the Canada-U.S. Free Trade Agreement, to the negotiating team.

·         February 2005:  At the instigation of Grant Aldonas of US Department of Commerce, talks resumed in February and March.  With the departure of Grant Aldonas on March 31, USTR became responsible for the file.

  • December 2003/January 2004 Interim Measure discussions (quota):  On December 6, 2003 Canadian and US negotiators reached a tentative agreement to end the Canada-US softwood lumber dispute.  The U.S. Coalition for Fair Lumber Imports supported this proposal.  British Columbia and other provinces had several concerns about the proposal, especially whether it truly provides a road map to free trade.  In January 12, 2004 meetings, the federal Minister of International Trade, Jim Peterson, raised the issue with U.S. Commerce Secretary Don Evans and U.S. Trade Representative Robert Zoellick.  The proposed agreement included a quota on Canadian softwood lumber entering the United States.  The federal government posted principles that it will follow in making initial quota allocations as well as information about the operation of a possible export control regime.  These "Quota Allocation Principles" can be found on the International Trade Canada website (Details).  The Canadian government consulted with provincial governments and industry about the proposed agreement.
  • US Policy Bulletin:  The US worked with Canadian governments and industry to develop a policy bulletin.  The policy bulletin outlines changes to provincial forest policies that would result in the countervailing duty (CVD) being revoked.  A final draft was released for comment on June 18, 2003 and the comment period closed on August 22, 2003.  A final policy bulletin was not released.  (draft Policy Bulletin)
  • Summer 2003 Interim Measure discussions (quota):  On May 23, 2003 the federal Department of Foreign Affairs and International Trade (DFAIT) gave the U.S. Department of Commerce a proposal for an interim agreement that led to a series of negotiations.  On July 24, 2003 the Canadian and US federal governments jointly forwarded a proposal for an interim agreement based on reintroducing a quota system for Canadian lumber entering the U.S.  The quota would replace U.S. duties while long term reforms in provincial forestry policies are being implemented under the Policy Bulletin process.  However, the negotiations stalled in late July when the U.S. Coalition for Fair Lumber Imports imposed a new series of conditions. 
  • 2001/2002 Interim Measure discussions (export tax):  Starting in the fall of 2001, the U.S. and Canadian governments held discussions to determine whether possible policy changes could lead to a durable resolution of the softwood lumber trade dispute.  The B.C. government was engaged in these talks, along with the federal and other provincial governments.  These talks broke off on March 21, 2002.  Canada and the U.S. were unable to agree on the rate of the proposed transitional export tax, and issues related to provincial forest policy changes.  In addition, the U.S. did not accept Canada's proposal for binding dispute resolution by an independent third party.