AWARD-WINNING TRAINING SINCE 1995
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Canadian Lumber Dispute Settled

Washington (AP) -- The United States and Canada announced an agreement on Thursday to settle a drawn-out and heated trade battle over softwood lumber, a major home-building component.

The U.S. timber industry said it could support he accord, but Americans should not expect a price break from the deal when they pay for their new houses.

The agreement was announced yesterday at a joint U.S. - Canada news conference at the Canadian Embassy.

"This agreement is an historic opportunity to resolve a dispute that has lasted for more than two decades," U.S. Trade Representative Rob Portman said. Canadian Trade Minister David Emerson called the deal "a watershed moment" in trade relations between the two nations.

"Today is a great day for Canada," Canadian Prime Minister Stephen Harper declared in the House of Commons, where he received a standing ovation when he announced the agreement.

Harper, who took office in February as the Conservative Party returned to power for the first time n more than 12 years, has sought to resolve the bitter dispute that has strained U.S. - Canadian relations for the last two decades. Harper and President Bush discussed the matter on a telephone call last weekend.

Aboard Air Force One, en route back to Washington from the Gulf Coast, Bush spoke with Harper, according to White House spokesman Scott McClellan. The two leaders congratulated each other on bringing the long-running dispute to an end, he said.

"This agreement shows how NAFTA partners can overcome differences and work together," Bush said in a statement later, referring to the North American Free Trade Agreement among the U.S., Canada and Mexico.

U.S. tariffs on Canadian lumber started at an average of 27 percent in 2002 but now average 1 percent because of various reviews and trade panel rulings.

The U.S. goal is to keep Canada's share of the U.S. softwood lumber market from exceeding the current level of around 34 percent. However, the deal does not impose any specific cap.

Instead, Canada agreed to impose taxes on its lumber exports to the United States if the price of lumber falls below a specified level. Softwood lumber is currently averaging $370 per 1,000 board feet.
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