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Canfor Corp, West Fraser Timber in focus amid reports of U.S. taking first step in new lumber spat with Canada

Canfor Corp (CFP.TO) and West Fraser Timber Co. (WFT.TO) are both in focus today amid reports the U.S. Trade Representative's office has asked the Canadian government for trade consultations on apparent subsidies provided by the province of British Columbia to Canadian softwood lumber producers.

Reuters says this is the first step in launching a trade complaint on the issue.

WFT is down 2 cents at $36.64, having earlier touched a day high $37. CFP is 5 cents lower at $8.07, having earlier touched a day high $8.20.

"The United States and Canada have been engaged in discussions regarding the apparent under-pricing of timber harvested in the interior region of British Columbia for many months, but those discussions have so far been unsuccessful," U.S. Trade Representative Ron Kirk reportedly said in a statement.

Kirk reportedly said it appeared that British Colombia was selling timber at an unfairly low price to Canadian softwood lumber producers to circumvent certain export measures required under a 2006 bilateral lumber pact.

The Canadian government did not immediately comment, Reuters says.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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