U.S. softwood claim denied by Canada

Canada denied an accusation by the United States Trade Office Tuesday accusing British Columbia of illegally subsidizing its softwood lumber producers.

The U.S. said Tuesday it is taking Canada to court over the issue of whether the province is over-playing the impact of pine beetle infestation and selling timber cutting rights at an artificially low rate.

Minister of International Trade Peter Van Loan said in a statement the complaint deals with a pricing system that is no longer in place.