$1:
The United States 2, Canada 0.
The U.S. won a second consecutive softwood lumber arbitration case Friday, and it could cost Quebec and Ontario sawmills as much as $60-million (U.S.) in penalties, says U.S. Trade Representative Ron Kirk.
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The London-based Court of International Arbitration agreed with the U.S. that a series of grants, tax credits and loans the two provinces made to lumber producers marked an attempt to �circumvent� a 2006 cross-border trade deal, Mr. Kirk said.
Canada has 30 days to �reverse the breach� or put a tax on exports from those provinces totalling $59.4-million, the U.S. said.
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A 2006 agreement between Canada and the United States, which ended years of litigation, limits exports of Canadian softwood lumber. The U.S. industry has long complained that Canada has tried to skirt the deal.
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