The softwood lumber dispute has been ongoing for years now, and
despite a NAFTA ruling in favor of Canada, the United States has no
plans to obey it. The recent ruling that calls for the U.S. to refund
$5-billion in illegally collected duties on lumber has not only been
spurned by Washington, it has prompted a legal challenge to NAFTA’s
authority to resolve trade disputes. Some say the reaction to the
ruling will spawn a trade war as officials in Canada look to
retaliatory measures, while others optimistically say the U.S. will
respect its international treaties. The ruling was hailed as a major
win here in Canada, and as such if it is not followed by the U.S.
there will be major reprecussions on the NAFTA treaty and general
Canada-U.S. relations.
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