U.S. and Canada extend softwood agreement

WASHINGTON, Jan. 23 (UPI) -- U.S. and Canada trade ambassadors Monday signed a two-year extension to a softwood trade agreement, the Office of the U.S. Trade Representative said.

Trade Representative Ron Kirk and Canadian International Trade Minister Ed Fast signed the agreement in Washington, extending it through Oct. 12, 2015, two years past its previous end date.

"The Softwood Lumber Agreement is very important for U.S. producers, particularly when both sides of the border are facing weak demand," Kirk said.

"Trade agreements are about providing a predictable and fair environment for conducting international trade."

The agreement, which took effect in 2006, ended years of dispute over duties imposed on Canadian lumber with the United States contending the industry in Canada was unfairly subsidized.

In the trade agreement, the United States stops imposing extra duties on Canadian softwood in exchange for Canada applying export restrictions when the price of lumber falls below a certain level.