The London Court of International Arbitration (LCIA) has handed B.C. a “total victory” in a softwood lumber dispute with the U.S., Pat Bell, Minister of Jobs, Tourism and Innovation, said yesterday.
The ruling proves that B.C.’s market-based timber pricing policies are fully consistent with the 2006 Canada-U.S. Softwood Lumber Agreement (SLA) and that B.C. has always honoured its commitments under the SLA, Bell said.
The decision is worth $300 million to B.C. softwood producers.
The arbitration panel dismissed the U.S.’s complaint entirely, which was not well received by the U.S. Lumber Coalition.
“The coalition is very disappointed that the LCIA did not find that compensatory export taxes were justified,” said Steve Swanson, chair of the coalition and president of the family-run Swanson Group in Oregon.
“This case has clearly defined the limitations of this trade agreement to curtail Canadian manipulation of its stumpage pricing for the exclusive benefit of the Canadian industry.”
A 2011 complaint filed by the U.S. alleged that B.C. was selling softwood at less than market value, given an increase in low-grade timber that was harvested as a direct result of the pine beetle infestation.
