U.S. court
Gordon Hamilton, CanWest News Service
VANCOUVER - The United States Court of International Trade ruled lumber duties are unlawful Friday, handing Canadian lumber producers a victory in their battle with the United States over softwood lumber.
But with an agreement already initialled by the two countries and ready to be introduced in Parliament this September, the deal already in hand is the one Canada intends to go ahead with, said a spokesman for International Trade Minister David Emerson.

"We are still moving strongly ahead with this (agreement)," said Robert Klager, director of communications in Emerson's office. "As far as changing anything, I am sure there will be a lot of commentary about it. But the government is still confident that the agreement we have reached guarantees money back into the hands of the industry and it brings the stability that years of litigation simply haven't."
B.C. Forests Minister Rich Coleman said if Friday's ruling will not derail Ottawa's softwood timetable, it may provide leverage for a separate initiative to convince the American industry to bend a little more.
Coleman said despite Ottawa's insistence that the July 1 softwood deal is final, discrete talks are taking place with U.S. counterparts to reach an accommodation that would bring provincial governments and the industry on board. The Canadian industry is preparing a pan-Canadian package to present to the U.S. lumber industry and Coleman said he has been in direct talks with U.S. officials himself.
Friday's court ruling "does help to focus the minds of the guys in the U.S. that maybe they do want to get this deal done," Coleman said in an interview.
But to go into force, the softwood deal already agreed to by Ottawa requires forest companies to withdraw their lawsuits in U.S. courts, including the case before the Court of International Trade. And with Friday's ruling in their favour, companies are reviewing their options.
"Certainly it makes the negotiation and settlement issue more interesting," said John Allan, president of the B.C. Lumber Trade Council.
Friday's ruling voided a U.S. tactic to sidestep an earlier NAFTA panel ruling in Canada's favour. The ruling can be appealed by the Americans, something the U.S. lumber lobby said it intends to do. It will kill its appeal only if the already-initialled agreement comes into effect.
United States Trade Representative spokesman Stephen Norton said that agency is also considering an appeal.
But Norton acknowledged the ruling, if it is not reversed on appeal, "will essentially bar the United States from collecting additional anti-dumping and countervailing duties on softwood lumber."
Allan called the ruling crucial as it destroys the whole U.S. argument for imposing duties: that Canadian lumber imports pose a threat of injury to the U.S. industry. NAFTA has already ruled there is no threat of injury but the U.S. responded by using Section 129 of their trade law -- which addresses separate World Trade Organization regulations -- to render the NAFTA decision moot. Friday's unanimous court decision threw out the American tactic.