A pending U.S.-Canada trade agreement on softwood lumber still has a hurdle ahead but is moving closer to final approval. Nevertheless, as U.S. housing markets soften and lumber prices fall, U.S. housing construction firms worry that provisions in the pact dealing with tariffs tied to market prices will increase Canadian lumber's cost.
Prospects for the deal brightened Aug. 22 when Canadian Prime Minister Stephen Harper said "a clear majority" in his country's timber industry supports the pact. Harper, the Conservative Party leader who took office in February, said Parliament will vote on enabling legislation for the agreement after it returns to session Sept. 18. He says the vote "will be a confidence measure." Thus, if the bill is defeated a new election would be held.