WASHINGTON. Apr 3: The United States and Canada settled a long-running dispute over lumber yesterday, with Washington pledging not to launch punitive trade moves against Canada for five years in exchange for cuts in Canadian imports, reports AFP.

'This Is the culmination of a dispute that has been going on at least 15 years." said US Trade Representative Mickey Kantor. "It will result in reductions In imports, it will add certainly to the market and will keep US industries com-petltlve." ,

Added Canadian International Trade Minister Art Eg-gleton: "As a result of the deal Canadian lumber companies will not have to face US trade actions that would have resulted in both high US tariffs on alb Canadian softwood exports and expensive legal battles."

The two sides reached an agreement in principle in mid-February and have spent the intervening weeks Ironing out details. The conflict was sparked by complaints from US loggers that low felling or "stumpage" — fees charged by Quebec and British Columbia had acted as a hidden subsidy.

"The centerpiece (of the accord) is a five-year reduc-' ’ In Imports from Canada's four leading lumber-producing provinces — British Columbia. Quebec. Ontario and Alberta —

in exchange for US Industry, and government commitments that there would be no trade action during that period.' said a US trade official speaking on background.

• He said that after "years of bitterness and acrimony" over the issue Canada and the United States decided to "bring peace to the sector."

Tariff-free exports from the four provinces will be limited to 14.7 billion board fee/ a year, down-from the record level of 16.2 billion board feet exported in 1995.

Border fees of 50 dollars per thousand board feet will be Imposed by Canadian authorities on the first 650 million feet above the 14.7 billion limit and 100 dollars per thousand feet on greater quantities.

The accord, parts of which came into effect on Monday, also outlines a dispute-settlement procedure, according to the official, who added that the deal could be renewed after five years.

Canadian lumber exports to the United States account for 36 per cent of the US market, according to US trade ex-^>erts. up from 27 per cent in

With the surge in imports, lumber prices have dropped by more than one third from their January 1994 peak. US officials insist, prompting the loss of thousands of jobs in the lumber industry.