Ottawa — Canada is claiming a major victory in the softwood lumber dispute with the United States following a key ruling by a NAFTA panel and is demanding quick repayment of billions of dollars in penalties collected by Washington.
An extraordinary challenge panel under the North American free-trade agreement has dismissed U.S. arguments that an earlier NAFTA ruling in favour of Canada violated trade rules.
Analysts have previously said such a win could be the final blow to the U.S. industry's claims that Canadian producers are unfairly subsidized.
A trade official said the battle may not be over, because the Americans still have some options outside NAFTA, including a formal constitutional challenge.
http://www.theglobeandmail.com/servlet/story/RTGAM.20050810.wwood0810/BNStory/National/What is a constitutional challenge?
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