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Softwood lumber deal rejected

Tuesday, Jan. 13, 2004 | 9:26 a.m.

WASHINGTON -- Canada on Monday turned down an American proposal aimed at ending steep U.S. tariffs on Canadian lumber imports.

Provincial governments opposed the deal, which would have dropped the tariffs in exchange for a quota system limiting Canada's access to the U.S. market.

"It's not a question of rejecting," Canadian Trade Minister Jim Peterson told reporters Monday after meeting with U.S. Trade Representative Robert Zoellick and Commerce Secretary Don Evans. "All we're doing is pointing out there's no support from the provinces."

A spokesman for Zoellick declined to comment on the lumber dispute but said the overall tone of the meeting was positive.

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