Litigation looms if softwood talks fail

NOT THE FIRST TIME

ALEXANDER PANETTA WASHINGTON • As softwood negotiations with the U.S. languish, the Canadian government says it’s readying itself for the next phase of the lumber fight, which has historically been a necessary step in resolving this recurring dispute: litigation.

Canada’s ambassador to Washington says the two governments have been working hard to get a deal and will continue to do so, but, with U.S. industry resistant to an agreement, he says the Canadian side is prepared to fight in court.

“We’re going to try really hard in the next little while to get a fair and balanced agreement with the United States,” David MacNaughton said Thursday at an event attended by provincial representatives. “If that is not possible, we have all agreed that we will take all necessary steps to litigate this matter until we get a fair arrangement as we have in the past.”

It wouldn’t be the first time. The issue has regularly gone to court over the decades. The irony this time is that the fight would likely be playing out in dispute-resolution panels under NAFTA’s Chapter 19 — at the very moment U.S. negotiators are asking Canada to end Chapter 19.

That’s one reason both countries worked to get a softwood deal before NAFTA talks began this month — but ultimately failed.