US seeks more time, clarification in softwood case

The US Commerce Department asked a NAFTA trade panel on Friday to clarify its latest ruling on softwood lumber duties, a move that left Canadian trade officials grumbling.
Washington wants the panel to explain a decision it made three weeks ago requiring the United States to again recalculate highly contested duties on Canadian softwood lumber - a decision that Canada maintains should eliminate the duties.
The Commerce Department, which faced a deadline on Friday to respond to the panel, said it also requested an extension of the deadline for recalculating the duties until it receives the clarification.
"We're not trying to delay things. we're trying to do it right," a Commerce Department official said. The US refusal to lift the duties, despite Canadian successes before a North American Free Trade Agreement trade panel, has strained relations.
However, Washington says it is within its rights because it has prevailed on certain aspects of the case at the World Trade Organisation.
"This administration is fully committed to NAFTA and to coming to a lasting agreement with Canada to resolve this dispute," Commerce Secretary Carlos Gutierrez said in a statement.
"The department has requested clarification because we have significant questions about the methodology applied by the NAFTA panel."
Washington has asked to restart negotiations over the trade dispute, but Canada - having recently one some key NAFTA rulings - wants the United States to give a sign of goodwill before any talks can begin.
Canada sells about $6 billion in softwood lumber to the United States annually, supplying about one third of the US market for the timber used in housing construction.
"We strongly regret the delay, but we are confident the NAFTA panel will act fairly and respond as soon as possible," Canadian Trade Minister Jim Peterson said. "Further delay will not help anyone."
A Canadian official speaking on background said the Unites States has missed an opportunity to show it is willing to live within the rules of NAFTA when the decisions go against Washington's wishes.
Peterson is scheduled to meet on Monday with the chief executives of Canada's largest lumber producers.
The United States will continue to collect the duties, which average about 20.15 percent, while the panel considers the request for more time and clarification.