U.S. to Challenge Ruling on Lumber

The United States will file a rare “extraordinary challenge� to a decision by a North American Free Trade Agreement panel that Canadian softwood shipments did not threaten the American lumber industry, the Bush administration said.

A NAFTA panel on Aug. 31 ruled that the U.S. lumber industry was not threatened by billions of dollars in annual imports of Canadian spruce, pine, fir and other woods used to build and remodel houses. That ruling could potentially end U.S. punitive duties on the Canadian wood.

In 2001, the United States began an investigation of Canada’s lumber marketing practices at the request of American timber landholders and lumber companies.