Ontario lumber groups sue over softwood deal Two Ontario lumber industry organizations are seeking legal action to force a final ruling under the North American Free Trade Agreement that Canadian lumber is not unfairly subsidized. The Ontario Lumber Manufacturers Association and the Ontario Forest Industries Association said Tuesday they are filing actions in the U.S. Court of International Trade and U.S. Court of Appeals in the District of Columbia challenging the suspension by the Canadian and American governments of NAFTA panel proceedings on the issue. "The two federal governments have conspired to prevent Canadian private industry from finalizing a decision of a NAFTA panel for which we fought for four long years," stated Jamie Lim, president of the Forest Industries Association. The panel found Canadian softwood lumber is not subsidized, and "that decision should be final and recognized," Lim said. "The United States does not want it recognized and, regrettably, the government of Canada has gone along." David Milton, president of the lumber makers' association, added that the governments are violating their NAFTA obligations because legally "there is no such thing as the suspension of a proceeding in NAFTA." The organizations note that despite the softwood lumber trade agreement announced by the two governments April 27 — ending highly punitive U.S. tariffs if import limits and prices are maintained — the Canadian lumber industry must continue depositing about $40 million a month in estimated countervailing duties. The NAFTA panel called for an end to this, Lim and Milton stated, but the two governments "are trying to avoid this legal decision by preventing the extraordinary challenge, launched by the United States, from going forward." The legal action by the two Ontario groups in the Court of Appeals in Washington contends that if the governments are right in refusing to appoint judges to an extraordinary challenge committee, NAFTA itself is unconstitutional because it violates U.S. property due-process rights. The other suit in the Court of International Trade serves notice on Ottawa that the associations will be seeking to compel arbitration, and sues the United States for failing to proceed with the extraordinary challenge as, the associations say, is required by NAFTA and U.S. law. The Ontario groups say the United States has continued with lumber-related litigation despite the announced framework agreement. "As long as there is no signed and final agreement, there is no agreement," stated Milton, "and we must protect our rights as much as the Americans are protecting theirs."
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