Canada cancels talk after U.S. ignores NAFTA panel decision

| 8/19/2005

The Canadian Trade Minister has suspended a meeting to discuss how to resolve a softwood lumber dispute between Canada and the United States.

Trade Minister Jim Peterson cancelled the talks, which were scheduled to take place on Monday, Aug. 22, in protest of the United State’s refusal to abide by a NAFTA panel ruling that sided with Canada.

The United States had claimed that Canada’s softwood exports were being subsidized by Ottawa, and were therefore damaging the U.S. economy. Because of this, the Bush administration began imposing tariffs in 2002.

NAFTA’s Extraordinary Challenge Committee disagreed with the United States, but so far, the United States has not dropped the tariffs, prompting Canada to cancel the upcoming talks.