A U.S-Canada agreement aimed at resolving a lengthy trade dispute over Canadian exports of softwood lumber was praised by federal government officials and U.S. lumber producers, but criticized by U.S. home builders.
The deal, announced April 27, puts no quotas, tariffs or other restrictions on Canadian lumber shipments to the U.S. under current market conditions, both sides say. If the lumber market weakens, Canadian lumber producers would pay export taxes that would be adjusted as prices decline, according to the U.S. Trade Representative's office. USTR adds that Canadian provinces could decide to reduce these export taxes by cutting exports below recent levels.