2011-01-18

U.S. and Canada fight over lumber, and beetles

The United States accused Canada on Tuesday of violating a lumber trade deal by under pricing wood from trees killed in a massive insect infestation in British Columbia.

Washington filed the complaint on behalf of U.S. lumber producers who say their Western Canadian rivals are being subsidized though use of the cheap timber, which they say is prohibited under the 2006 trade deal.

The request for binding arbitration to resolve the dispute is the latest flare-up in a quarrel over lumber used for housing construction that has been a thorn between the major trading partners for decades.