Softwood Lumber Agreement 2006

On the other hand, the major sectoral organizations in the United States do not want to renew the treaty. The executive director of the U.S. Lumber Coalition, Zoltan Van Heyningen, expressed disapproval of the current format of the agreement. One reason for this is the evolution of the cost of softwood lumber, which the United States believes has not been included in the costs of B.C wood. The Coalition of Members stresses that if negotiations fail, its legal position to ask the US Department of Commerce to file a new case is certain. In April 2006, the United States and Canada announced that they had reached a preliminary agreement to end the dispute. The Softwood Lumber Agreement (SLA), known as the Softwood Lumber Agreement (SLA), came into effect in October 2006. The conditions stipulated that the duration of this agreement would be between seven and nine years. Both countries authorized a two-year extension in 2012. [7] Under the provisional conditions, the United States would lift countervailing and anti-dumping duties, provided that timber prices remain above a certain range. Below the indicated range, a mixed regime of export taxes and quotas for Imports of Canadian Timber would be put in place. On Canada`s side, the country has agreed to impose regulations, for example in the form of taxes on softwood lumber exports to the United States. In particular, Canadian provincial governments have been encouraged to make changes to their pricing systems.

Such changes would allow for a non-subsidizing system. Under the agreement, more than $5 billion in customs bonds collected would be refunded. The SLA establishes a dispute settlement mechanism based on the London Court of International Arbitration (LCIA), a non-governmental institution. Both countries can initiate the resolution of disputes arising from the SLA or its implementation. The hearings will be public, as will briefs and other documents. [8] The agreement provides that hearings must take place either in the United States or in Canada (jurisdiction is chosen by the arbitral tribunal). The SLA also provides that decisions of an arbitration panel are binding on both parties. [9] 3.

The United States has the immediate and unconditional right to terminate the SLA 2006 if Canada fails to apply the export measures.. . . .