The Forest for the Trees: A Roadmap to Canada's Litigation Experience in Lumber IV

The ongoing feud over the export of Canadian softwood lumberto the US is likely one of the most litigated trade disputesin history. In April 2001, the fourth round of the lumber disputecommenced. The ensuing five-and-a-half years featured a numberof cases being filed before panels constituted under the NorthAmerican Free Trade Agreement (NAFTA) and the World Trade Organization(WTO), as well as, for the first time, US domestic courts. Duringthe summer of 2006, as with the two rounds of the dispute immediatelybefore it, Canada and the US negotiated a settlement. This articlepresents a broad overview of the softwood lumber dispute andexamines what was accomplished in the Lumber IV litigation.It explores the decisions rendered by NAFTA and WTO panels,as well as the historic foray by Canadian parties into the UScourts. It also analyses lessons learned from the softwood lumberlitigation, and the potential applicability of these lessonsto other complex trade disputes.