Ontario slams U.S. over softwood lumber assertions

MNR News Release

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TORONTO — Ontario rejects U.S. assertions that provincial programs contravene the Softwood Lumber Agreement signed last year, Natural Resources Minister Donna Cansfield said today.
“Our programs do not contravene the Softwood Lumber Agreement,” said Cansfield. “It is frustrating that the U.S. softwood lumber industry continues to play games with this important issue.”

This week, the U.S. government filed a second request for arbitration proceedings under the 2006 Softwood Lumber Agreement. The filing deals with aspects of six programs set up by the governments of Ontario and Quebec to address forestry and forest industry issues. The Ontario programs that are the subject of the request are the Forest Sector Prosperity Fund, the Loan Guarantee Program and a forest access roads program.

The first request for arbitration is related to the method Canada used to calculate allowable export volumes. Ontario agrees with Canada’s method of calculation. The matter was heard on December 12, 2007, and a decision is anticipated in February.

“The Ontario programs that the U.S. reviewed in consultations with Canada pre-date the Softwood Lumber Agreement and are actually quite similar to U.S. federal and state programs,” said Cansfield. “It would be most unfortunate if the agreement, which was intended to settle disputes, should now become a tool to challenge pre-existing forestry programs on both sides of the Canada-U.S. border.”

Ontario is committed to working with the federal government in responding to this second softwood lumber arbitration challenge and expects the federal government will effectively defend Ontario’s position in the arbitration hearing.

The Canada-United States Softwood Lumber Agreement was implemented October 12, 2006.

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