U.S. expected to demand billions in penalties over B.C. softwood lumber

The United States is expected to seek billions of dollars in penalties Tuesday when it files its case to back a claim that British Columbia is subsidizing wood damaged by the mountain pine beetle.

The U.S. Trade Representative is slated to present a brief to the London Court of International Arbitration seven months after it alleged that British Columbia was breaking the 2006 softwood lumber agreement by selling the province's timber at artificially low prices.

In January, it filed a complaint after consultations last fall failed to result in a resolution.