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On March 30, 2007, the United States requested formal consultations with Canada to allay concerns about Canada`s lack of implementation of export measures. [22] The following month, April 19, formal consultations were held between the two governments[9] On August 7, the United States launched arbitration proceedings before the London Court of International Arbitration (LCIA), a private body, pursuant to a comparison mechanism established in the Softwood Lumber Agreement (SLA 2006). [23] [24] The formal request for arbitration took place on August 13. [9] [22] Canada responded to this request for an outright decision on September 12. [25] The following year, on January 18, the U.S. government filed a second arbitration application, which focused on provincial implementation programs in Ontario and Quebec. [26] Canada responded on February 18, 2008. [27] On March 4, the LCIA (in the first arbitration) ruled that Canada was violating the 2006 AES in its eastern provinces, but not in its western provinces. [28] The proceeding consisted of a Belgian arbitrator appointed by Canada, a British arbitrator appointed by the United States and a chairman of the German panel. [8] On February 26, 2009, the LCIA issued its judgment in the second arbitration: Canada violated the conifer timber agreement for failing to properly calculate quotas from January to June 2007.

[29] [30] [31] The arbitration body ordered that sawmills in the provinces of Ontario, Quebec, Manitoba and Saskatchewan pay an additional 10 per cent export tax (up to $68.26 million). The court imposed a 30-day period to remedy the offence. Although the signing of the agreement was an important step, each country must have the agreement approved by its legislators before it can formally enter into force. In the United States, Democrats in the House of Representatives have expressed a desire that the agreement includes stricter labor provisions and that some of them will not vote in favor of the agreement. The debate on the ground will be an indicator of the number of protesters who will be working with Republicans to approve the new agreement. The latest news on tariff facilitation should help speed up approval of the agreement. In April 2006, the United States and Canada announced that they had reached an interim agreement to end the dispute. The announced Softwood Lumber Agreement (SLA) came into full force in October 2006. The terms stipulated that the period of this agreement would last between seven and nine years.

The two countries agreed to a two-year extension in 2012. [7] Under the interim conditions, the United States would lift countervailing and anti-dumping duties if timber prices remain above a specified range.