NAFTA softwood ruling favours Canada

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OTTAWA, Ont. — Canadian lumber producers won a huge battle today as a NAFTA dispute resolution panel sided with Canada in the ongoing softwood lumber dispute.

The panel said U.S. lumber producers have not suffered serious injury from Canada’s softwood exports. That flies in the face of the main argument from U.S. producers. The U.S. has slapped 27 per cent duties on Canadian lumber exports which have cost Canadian lumber companies millions of dollars.

It is expected the dispute may drag on, however, as the U.S. is expected to appeal the ruling.

Still, Canadian Prime Minister Paul Martin lauded the ruling, saying it "vindicated the Canadian position."

He is in Washington to meet with U.S. President, George Bush and softwood will be one of the topics discussed.

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