Canada Sues U.S. Over Collection of Byrd Funds

May 18, 2005


Filed on April 29th, the Canadian law suit is also demanding that $5 million which has already been illegally distributed to the U.S. lumber industry be repaid. Canada also expects the $4 billion in lumber duties sitting in escrow to be returned.

Canada is basing its case on the U.S. failure to respect its obligations under the North American Free Trade Agreement (NAFTA) for the amendment of trade laws. U.S. law, implementing international obligations pursuant to NAFTA, requires the U.S. to specify in any trade law amendment (such as the Byrd Amendment) whether the amendment applies to merchandise from Canada or Mexico.

Since the Byrd Amendment does not specify either country, it should therefore not apply to their merchandise. In addition, NAFTA forbids any amendments to trade laws that violate obligations under the World Trade Organization (WTO) or other international agreements. Since the Byrd Amendment has been found to be illegal by the WTO, it cannot apply to Canadian or Mexican goods.


CWT hopes that this case along with Canadian and European sanctions will spur Congress to action. You can also make a difference by weighing in with your Representative in Washington and urging him/her to repeal the Byrd Amendment. We have drafted an email message for you to send. All you have to do is click here.


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