The Softwood Lumber Dispute Between Canada and The United States |
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Introduction Contd...
They felt that the US actions were against the spirit of the Free Trade Agreement (FTA) (Refer Exhibit II for a Brief Note on the Canada-US Free Trade Agreement) that the two countries had entered into in 1989.
The DisputeThe softwood lumber row between Canada and the US dates back hundreds of years, but in the 1980s, it emerged as a major trade dispute between the two North American nations. On October 7, 1982, the CFLI filed a petition, alleging that Canadian provinces, mainly British Columbia,10 extended subsidies to local lumber companies by charging low stumpage rates and that the low fees resulted in an unfair trade advantage for these companies... 8] In January
1994, Canada, the United States and Mexico signed the North American Free Trade
Agreement (NAFTA) and formed the world's largest free trade area. |
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