OTTAWA (AP) – American and Canadian officials Tuesday signed an agreement that both countries hope will put a long-standing softwood lumber dispute to rest.

Canada’s international trade minister, David Emerson, said his country’s lumber industry will likely see almost $4.5 billion in softwood lumber duties returned before the end of the year. Also signing the deal was U.S. Trade Representative Susan Schwab. Since the United States began charging duties on Canadian wood in 2002, lumber producers have paid nearly $5 billion.

Although the Liberal and New Democratic parties say they will vote against the deal when it comes before Parliament, the Bloc Quebecois has said it will vote with the government, guaranteeing approval. The agreement required industry support.

Emerson said once the enabling legislation comes forward in early October, the government can return the duties to lumber companies.

Maine Sen. Olympia Snowe called it “the final step in bringing to an end the nearly quarter century dispute our nation has had with the Canadian government over softwood lumber.”

Snowe, R-Maine, said the settlement replaces U.S. import duties with a combination of Canadian border taxes and quotas. Both countries hope the terms of the agreement are in place by Oct. 1, Snowe said.

The senator said the agreement “recognizes the adverse effect unfairly subsidized, artificially underpriced Canadian softwood lumber has had on the U.S. lumber industry and the millions of Americans who depend on its continued vitality.”

The agreement requires that Canadian companies withdraw legal challenges to corrective duties imposed by the United States, Snowe said.

AP-ES-09-12-06 1716EDT

Copy the Story Link