U.S. initiates arbitration against Canada under the Softwood Lumber Act
Jan 18, 2011. The United States has decided to initiate arbitration against Canada under the Softwood Lumber Agreement to address timber pricing practices in the British Columbia Interior.
Jan 18, 2011. /Lesprom Network/. The United States has decided to initiate arbitration against Canada under the Softwood Lumber Agreement to address timber pricing practices in the British Columbia (BC) Interior, as ForestTalk reported.
The U.S. feels that B.C. Interior lumber producers are selling enormous amounts of timber that was improperly classified as ‘lumber reject’ yet used to manufacture lumber for the minimum price of C$0.25 per cubic meter, contrary to rules grandfathered under the SLA that govern eligibility for the minimum stumpage price.
British Columbia has lowered their stumpage rate on pine beetle killed timber to $0.25 cents per cubic metre to encourage usage of the timber before the quality is too degraded.
The Softwood Lumber Agreement stipulates that any disputes under the agreement are to be resolved through a commercial-type binding arbitration process before the London Court of International Arbitration (LCIA), involving commercial arbitrators that are neither citizens nor residents of the United States or Canada.