Canada Agrees to Pay Fine for Breaching Agreement with the U.S.

Tuesday, September 29, 2009

On Tuesday, the Canadian government announced it will abide by the London Court of International Arbitration's ruling against Canada in a lawsuit alleging breach of the softwood lumber deal with the United States. The fine for the breach is approximately $68 million.

"None of us are happy with the ruling, but they are all in agreement with the direction we have gone," said the International Trade Minister Stockwell Day. "They (forestry workers) are all appreciative of the fact that we fought. We appealed and now we have a decision."

"Canada will, of course, follow the rules and we will obey the decision," Prime Minister Stephen Harper told the House of Commons during question period Tuesday.

Canada had offered to pay $46.7 million US in compensation for shipping too much wood south of the border. Instead, it will have to pay $68 million US, as originally ordered last February by the London Court of International Arbitration.

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