UNITED STATES – INVESTIGATION OF THE INTERNATIONAL TRADE COMMISSION IN SOFTWOOD LUMBER FROM CANADA
Document: Notification of Mutually Agreed Solution
Date: 16 November 2006
Document codes: WT/DS277/20; G/L/598/Add.1; G/ADP/D45/2; G/SCM/D51/2
Complainant: Canada
Respondent: U.S.
Third parties: China, EU, Japan, South Korea
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. VI:6  GATT 1994Art. 1, 3.1, 3.2, 3.3, 3.4, 3.5, 3.7, 3.8, 12, 18.1  Anti-dumpingArt. 10, 15.1, 15.2, 15.3, 15.4, 15.5, 15.7, 15.8, 22, 32.1  Subsidies and Countervailing Measures (SCM)

French

UNITED STATES – INVESTIGATION OF THE INTERNATIONAL
TRADE COMMISSION IN SOFTWOOD LUMBER FROM CANADA

Notification of Mutually Agreed Solution

 The following communication, dated 12 Octobe r 2006, from the delegation of the United
States and the delegation of Canada to the Chairman of the Dispute Settlement Body, is circulated
pursuant to Article 3.6 of the DSU.

United States – Preliminary Determinations with respect to Certain Softwood Lumber
from Canada (DS236)

United States – Provisional Anti-Dumping Measure on Imports of Certain Softwood Lumber
from Canada (DS247)

United States – Final Countervailing Duty Determination with respect to
Certain Softwood Lumber from Canada (DS257)

United States – Final Dumping Determination on Softwood Lumber from Canada (DS264)

 (DS277); and

United States – Reviews of Countervailing Duty on Softwood Lumber from Canada (DS311)

 The Governments of the United States of Amer ica and Canada hereby wish to notify the
Dispute Settlement Body ("DSB") that, in accordance with Article 3.6 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes , we have reached a mutually agreed solution to
the matters raised by Canada in th e above-referenced disputes. This solution has taken the form of a
comprehensive agreement between the United States and Canada, dated 12 September 2006, resolving
all disputes related to trade in softwood lumber between our two countries (the "Softwood Lumber
Agreement"). A copy of the Softwood Lumber Agreement is attached.

 In light of the foregoing, Canada hereby withdraws its requests (;
; ) to the DSB pursuant to Article 22.2 of the DSU for authorization to
suspend the application to the United States of tariff concessions or other obligations under the
General Agreement on Tariffs and Trade 1994 ("GATT 1994"). Canada having withdrawn its
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

requests under Article 22.2 of the DSU, th e United States hereby withdraws its requests
(WT/DS257/17; WT/DS264/19; WT/DS277/10) to the DSB for arbitration under Article 22.6 of the
DSU objecting to the level of suspension of ta riff concessions or other obligations under the
GATT 1994 proposed by Canada.

 This mutually agreed solution is without pr ejudice to the WTO rights and obligations of the
United States and Canada except with respect to the disputes listed above.

 We ask that you circulate this notification to the relevant Councils and Committees, as well as
to the Dispute Settlement Body.

 (signed) (signed)
 Peter F. Allgeier Don Stephenson
 Ambassador and Permanent Representative Ambassador and Permanent Representative
 of the United States to the of Canada to the World Trade Organization
 World Trade Organization
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

SOFTWOOD LUMBER AGREEMENT

BETWEEN

THE GOVERNMENT OF CANADA

AND

THE GOVERNMENT OF THE UNITED STATES OF AMERICA

THE GOVERNMENT OF CANADA ("CANADA") AND THE GOVERNMENT OF THE
UNITED STATES OF AMERICA ("UNITED STATES")

HAVE AGREED as follows:

ARTICLE I

Scope of coverage

1. This Agreement ("SLA 2006") applies to trade in Softwood Lumber Products. Softwood
Lumber Products are those products listed in Annex 1A. For domestic implementation and
administration purposes only, Canada shall rely on the Canadian Table of Concordance in Annex 1B.

2. No products shall be added to, or removed from, the scope of the SLA 2006 after April 27,
2006 without the agreement of the Parties, regard less of a decision, ruling, determination, or
re-determination by a Party, the effect of which would be to:

 (a) classify or reclassify a product within or outside a tariff item in Annex 1A; or

 (b) determine or rule that a product is within or outside a product description in
Annex 1A.

3. If there is a dispute as to whether a product is a Softwood Lumber Product, a Party shall refer
the matter to a Technical Working Group establis hed under Article XIII(C), by providing written
notice of the referral to the other Party.

4. Within 60 days after a Party provides wr itten notice under paragraph 3, the Technical
Working Group shall review the matter and, wh ere possible, provide a non-binding recommendation
to the Parties regarding whether the product in ques tion falls within or outside a tariff item or product
description in Annex 1A.

5. If, following the 60-day period specified in para graph 4, the Parties fail to resolve the matter,
either Party may initiate dispute settlement under Article XIV.

6. If a tribunal established under Article XIV issu es an award clarifying whether a product falls
within or outside a tariff item or product descripti on in Annex 1A, the award shall govern whether the
SLA 2006 applies to the product.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

ARTICLE II

Entry into force

1. The SLA 2006 shall enter into force on a date designated by the Parties in an exchange of
letters (the "Effective Date"). The exchange of letters shall confirm that:

 (a) the Termination of Litigation Agreement in Annex 2A has been signed:

(i) by counsel on behalf of all represente d parties and participants to the actions
set out in the Termination Agreement, and

(ii) by authorized representatives of any unrepresented parties or participants to
the actions set out in the Termination Agreement;

 (b) pursuant to Article 3.6 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes , the United States and Canada have signed and filed the
Notification of Mutually Agreed Solution in Annex 2B with the WTO Dispute
Settlement Body;

 (c) the CIT has modified the injunctions against liquidation issued in West Fraser v.
United States (Consol. Ct. No. 05-00079) to permit the United States to fulfill its
obligations under Article III or has confirme d that fulfilling those obligations is not
inconsistent with those injunctions;

 (d) Canada has certified to the United States that it can administer the Export Charge and
issue Export Permits as of the Effective Date;

 (e) Canada and the United States have c onfirmed that Importers of Record that
collectively account for not less than 95% of total cash deposits on Covered Entries
and accrued interest have complied with all the requirements in paragraph 1 of
Annex 2C;

 (f) U.S. domestic interested parties that are companies and associations accounting for
greater than 60% of U.S. production of so ftwood lumber in 2005 have filed with
USDOC the irrevocable letters described in Article V and attached in Annex 5A on
the Effective Date, to take effect on th e Effective Date, and the United States has
certified that the letters collectively account for greater than 60% of U.S. production
of softwood lumber in 2005;

 (g) one or more U.S. domestic interested pa rties that are unions ha ve filed with USDOC
the irrevocable letters described in Artic le V and attached in Annex 5A on the
Effective Date, to take effect on the Effective Date; and

 (h) USDOC has issued the finding in Annex 5B based on the letters in Annex 5A,
effective on the Effective Date.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ARTICLE III

Revocation of antidumping and countervailing duty orders

1. On the Effective Date, the United States shall:

 (a) revoke retroactively the AD Order and th e CVD Order ("the Orders") in their entirety
as of May 22, 2002 without the possibility of their reinstatement; and

 (b) terminate all USDOC proceedings related to the Orders.

2. On the Effective Date, or no later than 3 days after the Effective Date, USDOC shall instruct
USCBP, as set out in Annex 3, to:

 (a) cease collecting cash deposits, as of the Effective Date, on imports of Softwood
Lumber Products from Canada; and

 (b) liquidate all Covered Entries made on or after May 22, 2002 without regard to
antidumping or countervailing duties and ref und all deposits collected on such entries
with all accrued interest pursuant to 19 U.S.C. § 1677g(b) to the Importers of Record
or their designates.

ARTICLE IV

Refund of antidumping and countervailing duty cash deposits

1. Within 10 days after the Effective Date, the United States shall begin to liquidate all Covered
Entries made on or after May 22, 2002 without regard to antidumping or countervailing duties, and
with interest pursuant to 19 U.S.C. § 1677g(b).

2. The United States shall complete the liquidation of Covered Entries and the refund of all cash
deposits as soon as possible, but not later than 6 months after the publication in the Federal Register
of the revocations referred to in Article III unless these entries are subject to an extension request
under 19 U.S.C. § 1504(b) and 19 C.F.R. § 159.12.

3. The United States shall approve all initial and s ubsequent requests for extensions of time that
Importers of Record or their designates make under 19 U.S.C. § 1504(b) and 19 C.F.R. § 159.12.

4. Canada or its agent shall purchase the rights to the amounts of the cash deposits for Covered
Entries and accrued interest from the Escrow Importers and make disbursements in accordance with
Annex 2C.

ARTICLE V

Commitments of the United States concerning
trade remedy investigations and certain other actions

1. For the duration of the SLA 2006, including any extension pursuant to Article XVIII, the
United States shall not:
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

 (a) self-initiate an antidumping or countervaili ng duty investigation under Title VII of the
Tariff Act of 1930 , as amended, or any successor law ("Title VII"), with respect to
imports of Softwood Lumber Products from Canada. If a petition is filed under Title
VII with respect to imports of Softwood Lumber Products from Canada, the United
States shall dismiss the petition on the basis of the irrevocable letters in Annex 5A
("no injury" letters) and the USDOC finding in Annex 5B. These letters shall be
provided by U.S. domestic interested parti es accounting for greater than 60% of U.S.
production of softwood lumber in 2005 and by one or more unions. Industry
association letters shall be effective with respect to their members' production, but
members with an annual production of so ftwood lumber of over 200 million board
feet in 2005 must individually provide a no injury letter to be counted toward the
threshold of 60% of U.S. production. The signed no injury letters shall be appended
to the SLA 2006 on the Effective Date;

 (b) take action under Sections 201 to 204, inclusive, of the Trade Act of 1974 , as
amended, or any successor law, with respect to imports of Softwood Lumber
Products from Canada;

 (c) initiate an investigation or take ac tion, including action pursuant to any prior
determination, under Sections 301 to 307, inclusive, of the Trade Act of 1974 , as
amended, or any successor law, with respect to imports of Softwood Lumber
Products from Canada; or

 (d) take action under Section 204 of the Agricultural Act of 1956 , as amended, or any
successor law, with respect to imports of Softwood Lumber Products from Canada.

ARTICLE VI

Export measures

As of the Effective Date, Canada shall apply the Export Measures
1 to exports of Softwood Lumber
Products to the United States.2

1 If any value referred to in the SLA 2006 is converted on the Date of Shipment from U.S. dollars to
Canadian dollars, the conversion shall be based on the nominal noon exchange rate quoted by the Bank of
Canada for the day before the Date of Shipment.
2 Exports of Softwood Lumber Products from each Region th at initially elects Option B (under Article
VII) nevertheless shall be subject to Option A (under Ar ticle VII) from the Effec tive Date until December 31,
2006, by which time Canada shall have completed the arrangements necessary for the administration of Option
B ("transition period"). Canada shall provide a refund of Export Charges paid during any month of the
transition period to exporters in such a Region if, during that month, the Region exported no more than what the
Region's volume restraint would have been had its exports been subject to Option B during the month. The
refund amount shall be the difference between what the exporter paid in Export Charges for that month, and
what the exporter would have paid in Export Charges for that month had the Region's exports been subject to
Option B. Article VIII shall not apply during the transition period to a Region that elected Option B during a
month in which it qualified for a refund. In determining the volume restraint levels which would have applied
to an Option B Region during the transition period, the ca rry-forward and carry-back rules laid out in Annex 7B
shall be taken into account for all of the months of the transition period.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ARTICLE VII

Export charge and export charge plus volume restraint

1. By the Effective Date, each Region shall elect to have Canada apply the measures in either
Option A or Option B to exports of Softwood Lumber Products to the United States from the Region.
Option A is an Export Charge collected by Canada , the rate of which varies based on the Prevailing
Monthly Price, as provided in the table in paragra ph 2. Option B is an Export Charge with a volume
restraint, where both the rate of the Export Charge and the applicable volume restraint vary based on
the Prevailing Monthly Price, also as provided in th e table in paragraph 2. The Export Charge shall
be levied on the Export Price. The Prevailing Monthly Price is defined in Annex 7A.

2. Subject to paragraphs 3 through 9, the E xport Measures that Canada applies under Option A
and Option B shall be based on the following table:

Prevailing
Monthly Price
Option A – Export Charge
(Expressed as a % of Export Price)
Option B – Export Charge
(Expressed as a % of Export Price)
with Volume Restraint
Over $US 355 No Export Charge No Export Charge and no volume
restraint
$US 336-355 5% 2.5% Export Charge + maximum
volume that can be exported to the
United States cannot exceed the
Region's share of 34% of Expected
U.S. Consumption for the month
$US 316-335 10% 3% Export Charge + maximum volume
that can be exported to the United
States cannot exceed the Region's share
of 32% of Expected U.S. Consumption
for the month
$US 315 or under 15% 5% Export Charge + maximum volume
that can be exported to the United
States cannot exceed the Region's share
of 30% of Expected U.S. Consumption
for the month

3. Under Option A, Canada shall collect fro m the Region's exporters on a monthly basis a
charge on each export of Softwood Lumber Products to the United States equal to the percentage of
the Export Price set out in the table in paragraph 2 that corresponds to the Prevailing Monthly Price.

4. Under Option B, Canada shall, on a monthly basis:

 (a) collect from the Region's exporters a charge on each export of Softwood Lumber
Products to the United States equal to the percentage of the Export Price set out in the
table in paragraph 2 that corresponds to the Prevailing Monthly Price; and

 (b) limit the Region's exports of those products during the month to the volume
determined in accordance with Annex 7B.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

5. An export of Softwood Lumber Products shall be deemed to occur in the same month as the
Date of Shipment for that export.

6. For the purposes of calculating Export Char ges, a Softwood Lumber Product that has an
Export Price of $US 500 per MBF or more shall be deemed to have an Export Price of $US 500 per
MBF.

7. The Export Charge on exports from Independent Manufacturers of Remanufactured Softwood
Lumber Products that have been certified pursuant to Annex 7C shall be assessed on the basis of the
definition of Export Price in Article XXI(25)(b) or (d).

8. Canada shall notify the Unite d States of each Region's original Option election no later than
10 days after the Effective Date.

9. After the Effective Date, each Region shall have 2 opportunities to change the Option it has
elected to apply to its exports of Softwood Lumber Products to the United States:

 (a) the first opportunity to change Options shall be effective on the 1st day of January
following the 3rd anniversary of the Effective Date; and

 (b) the second opportunity to change Options shall be effective on the 1st day of January
following the 6th anniversary of the Effective Date.

Canada shall provide written notice to the United States that a Region has elected to change its Option
at least 30 days in advance of the January date refe rred to in subparagraphs (a) and (b). Softwood
Lumber Products from a Region shall continue to be subject to the same Option as in the preceding
period if Canada does not provide timely notice.

10. Canada shall require an Export Permit on each entry of Softwood Lumber Products exported
to the United States.

ARTICLE VIII

Surge mechanism

1. This Article shall apply when the volume of exports of Softwood Lumber Products to the
United States in any month from a Region that h as elected Option A under Article VII exceeds the
Region's Trigger Volume:

 (a) if the volume of exports from the Region exceeds the Region's Trigger Volume by
1% or less in a month, Canada shall redu ce the applicable Trigger Volume for that
Region during the following month by the total MBF amount of the overage ( i.e., the
amount by which actual exports exceeded the Trigger Volume);

 (b) if the volume of exports from the Region exceeds the Region's Trigger Volume by
more than 1% in a month, Canada shall apply retroactively to all exports to the
United States from the Region during that month an additional Export Charge equal
to 50% of the applicable Export Charge determined under Article VII(3) for that
month.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

2. For the purposes of this Article, a Regional Tr igger Volume shall be calculated in accordance
with Annex 8.

ARTICLE IX

Third country adjustment

1. Under either Option A or Option B, Canada shall refund to exporters in a Region in the
amounts specified in paragraph 2, Export Charges they have paid during any 2 consecutive Quarters if
all of the following circumstances have occurred in each such Quarter when compared with the same
2 consecutive Quarters from the preceding Year:
3

 (a) the share of U.S. Consumption attributab le to non-Canadian imports ("third country
market share") has increased by at least 20%;

 (b) Canadian market share of U.S. Consumption has decreased; and

 (c) U.S. domestic producers' market share of U.S. Consumption has increased.

2. Where the conditions in paragraph 1 are satisfied:

 (a) if a Region has elected Option A, Canada shall refund to exporters in that Region the
amount they paid, up to the equivalent of a 5% Export Charge on their exports in the
2 consecutive Quarters identified on the basis of paragraph 1;

 (b) if a Region has elected Option B, Canada shall refund to exporters in that Region the
full Export Charge they paid in the 2 co nsecutive Quarters identified on the basis of
paragraph 1.

3. Canada shall not pay refunds to exporters from a Region if exports from that Region triggered
the surge mechanism in Article VIII(1)(b) in either of the 2 co nsecutive Quarters in which the
conditions identified in paragraph 1 were satisfied.

4. For purposes of this Article, U.S. Consumption, Canadian market share, third country market
share and U.S. producers' market share shall be established in accordance with Annex 7D.

ARTICLE X

Exclusions from export measures

1. The Export Measures shall not apply to the following products:

 (a) Softwood Lumber Products first produced in the Maritimes from logs originating in
the Maritimes or Maine, that are:

3 For the purposes of Article IX, each individual Quar ter included in 2 "consecu tive Quarters" is to be
compared only with the same Quarter from the preceding year. For example, the 2 nd Quarter of 2007 would be
compared to the 2nd Quarter of 2006 and the 1st Quarter of 2007 would be compared to the 1st Quarter of 2006 in
order to determine if the conditions in paragraph 1 are satisfied.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

(i) exported directly to the United States from a Maritime province, or

(ii) shipped to a province that is not a Maritime province, and reloaded or further
processed and subsequently exported to the United States,

 provided that the products are accompanied by an original Certificate of Origin issued
by the Maritime Lumber Bureau. An origin al Certificate of Origin issued by the
Maritime Lumber Bureau shall be a required entry summary document by USCBP.
The Certificate must specifically state th at the corresponding customs entries are for
Softwood Lumber Products first produced in the Maritimes from logs originating in
the Maritimes or Maine;

 (b) Softwood Lumber Products first produced in the Yukon, Northwest Territories or
Nunavut from logs originating in the Yukon, Northwest Territories or Nunavut; and

 (c) Softwood Lumber Products produced by the companies listed in Annex 10.

2. Continued eligibility for exclusion of Soft wood Lumber Products produced by the companies
listed in Annex 10 shall be contingent on the following provisions:

 (a) a base average monthly production shall be established for each company equivalent
to its total production of Softwood Lumber Products for 2004 and 2005, divided
by 24;

 (b) subject to clauses (f) through (i), each company's annual export limit shall be that
company's base average monthly production multiplied by the number of months in
that Year that the Prevailing Monthly Price was not more than $US 355/MBF;

 (c) for purposes of this subparagraph, a comp any's actual exports shall be determined at
the end of the Year by summing the company's actual exports during the months
when the Prevailing Monthly Price was not more than $US 355/MBF;

 (d) if, in any Year, a company's actual e xports do not exceed its annual export limit, the
company shall not be subject to a volume reduction penalty in the following Year;

 (e) if, in any Year, a company's actual exports exceed its annual export limit by 0.5% or
less, the company shall not be subject to a volume reduction penalty in the following
Year, and such exports shall be disregarded in determining whether the company has
exceeded its annual export limit under clauses (f) through (i);

 (f) if, in any Year, a company's actual exports exceed its annual export limit, its limit for
the following Year shall be reduced by the amount of the excess;

 (g) if, in any subsequent Year (whether or not consecutive), the company again exceeds
its annual export limit, its limit for the follo wing Year shall be reduced by twice the
amount of the excess;

 (h) if, in any subsequent Year (whether or not consecutive), the company again exceeds
its annual export limit, its limit for the following Year shall be reduced by 3 times the
amount of the excess; and
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

 (i) if, in any subsequent Year (whether or not consecutive), the company again exceeds
its annual export limit, the Softwood Lumber Products that company produces shall
no longer be excluded from the Export Measures.

3. With respect to each company listed in A nnex 10, the province in which the company is
located shall provide Canada before the Effective Date with a certified statement attesting to the
company's total production of Softwood Lumber Pr oducts for 2004 and 2005. Canada shall provide
these statements to the United States within 10 days of receipt. This information shall not be treated
as confidential under Article XVI. If exclusion of a company is limited to one or more mills,
"company" in this Article shall be limited to those one or more mills. The Parties shall cooperate with
respect to monitoring and enforcement, as contempl ated in Article XV, in respect of claims of
exclusion under this Article.

4. The Parties may agree to additional exclusions from the SLA 2006 for Softwood Lumber
Products produced from U.S.-origin logs or logs originating on private land in Canada.

ARTICLE XI

General provisions

1. The SLA 2006 is without prejudice to the position of either Party as to:

 (a) the validity of the AD Order or the CVD Order or any determinations underlying
those Orders;

 (b) the merits of, and any possible remedies arising from, any litigation related to those
Orders; and

 (c) the legal effect of any decision of any court or other dispute settlement body
regarding those Orders.

2. The operation and application of Section B of Chapter Eleven of the NAFTA is hereby
suspended with respect to any matter arising unde r the SLA 2006 and any measure taken by a Party
that is necessary to give effect to or implemen t the SLA 2006. Consequently, no claim under Section
B of Chapter Eleven of the NAFTA may be made ag ainst a Party by investors of the United States or
Canada in respect of any such matter or measure. The Parties shall inform each national Section of
the NAFTA Secretariat of this provision.

3. The Annexes are an integral part of the SL A 2006. No Person may assert any rights under the
SLA 2006.

ARTICLE XII

Regional exemptions from export measures

1. Within 3 months after the Effective Date, the Parties shall establish a Working Group on
Regional Exemptions. The Working Group shall de velop substantive criteria and procedures for
establishing if and when a Region uses market-determined timber pricing and forest management
systems and therefore that its exports of Softw ood Lumber Products to the United States qualify for
exemption from the Export Measures in Articles VII through IX and Article X(2). The Parties shall
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

make best efforts to incorporate the results of th e Working Group's work into an addendum to the
SLA 2006 within 18 months after the Effective Date . The mandate and procedures for the Working
Group are set out in Annex 12.

2. If a Region satisfies the substantive criteria and procedures for exemption developed and set
forth in an addendum referred to in paragraph 1, Softwood Lumber Products from that Region shall be
exempted from the Export Measures in Articles V II through IX and Article X(2) and thereafter
subparagraphs (a) and (b) shall apply with respect to that Region.

 (a) No public authority of Canada shall:

(i) modify the provincial timber pricing or forest management system as it
existed on the date of the exemption, or change its administration in a manner
that decreases the extent to which the system is market-determined. For
purposes of this Article, a provincial tim ber pricing or forest management
system includes, without limitation, the data, variables, and procedures that it
employs, or

(ii) provide any grants or other benefits that offset, in whole or in part, the basis
for the exemption under an addendum pursuant to paragraph 1. A grant or
benefit shall be considered to offset, in whole or in part, the basis for the
exemption, if it is provided, de facto or de jure, to producers or exporters of
Softwood Lumber Products in the Region. This clause shall not apply to
grants or benefits that satisfy the criteria in Article XVII(2)(a), (b), (c), (d), or
(e). For purposes of determining whether a grant or benefit meets the criteria
of Article XVII(2)(a), a measure shall not be considered to offset the basis for
the exemption if it existed on the date on which the Region was exempted
from the Export Measures pursuant to paragraph 1;

 (b)

(i) If, in any Quarter, exports of Softwood Lumber Products from the Region to
the United States exceed the sum of: (1) the total Regional production of
those products during the Quarter; a nd (2) the total Regional inventory of
those products during the Quarter, Cana da shall impose retroactively on the
exporters responsible for any such excess a charge equal to $C X, where X is
determined according to the following formula:

 X = ($C 200 multiplied by MBF export volume in excess of the sum of the
exporter's total Regional production du ring the Quarter and the exporter's
total Regional inventory during the Quarter),

(ii) Canada shall provide to the United St ates within 75 days after the end of each
Quarter data on: (1) the total Regional production of Softwood Lumber
Products during the Quarter; (2) the total Regional inventory of Softwood
Lumber Products produced from timber originating in the Region during the
Quarter; and (3) the volume of Softwood Lumber Products exported from the
Region to the United States during the Quarter, and

(iii) if either Party identifies any excess e xports described in clause (i), the Parties
and the province concerned shall cons ult and exchange pertinent data
concerning such excess exports.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ARTICLE XIII

Institutional arrangements

A. Private Initiatives

1. The Parties shall encourage interested Persons in Canada and the United States to create the
binational industry council described in Annex 13.

2. By the Effective Date, the United States, in consultation with Canada, shall identify
meritorious initiatives to receive the funds that are to be set aside for that purpose under Annex 2C.
The funds shall support meritorious initiatives in the United States related to:

 (a) educational and charitable causes in timber-reliant communities;

 (b) low-income housing and disaster relief; and

 (c) educational and public-interest projects addressing:

 (i) forest management issues that affect timber-reliant communities, or

(ii) the sustainability of forests as sources of building materials, wildlife habitat,
bio-energy, recreation, and other values.

B. Softwood Lumber Committee

1. The Parties shall establish a Softwood Lumb er Committee, comprising an equal number of
representatives of the Parties or their designees.

2. The Committee shall:

 (a) supervise the implementation of the SLA 2006;

 (b) oversee its further elaboration;

 (c) supervise the Working Groups established under the SLA 2006; and

 (d) consider any other matter that ma y affect the operation of the SLA 2006.

3. In exercising its functions, the Committee may:

 (a) establish and delegate responsibilities to Working Groups or expert groups;

 (b) seek the advice of Persons or non-governmental groups; and

 (c) take such other action in the exercise of its functions as the Parties may agree.

4. The Committee shall establish its rules and pro cedures. All decisions of the Committee shall
be taken by consensus, except as the Committee may otherwise agree.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

5. The Committee shall convene at least once a Y ear in regular session and at such other times
as the Committee may agree. Regular sessions shall be chaired successively by each Party.

C. Technical Working Groups

1. The Parties shall establish Technical Working Groups to meet upon the request of either
Party. The Working Groups shall comprise an eq ual number of representatives of each Party with
expertise in matters relating to the implementation and operation of the SLA 2006, including customs,
tariff classification under the Harmonized Commodity Description and Coding System, softwood
lumber markets and data sources and the technical specifications of Softwood Lumber Products.

2. Through the Working Groups, the Parties shall:

 (a) ensure the effective implementation and a pplication of the Export Charge in respect
of Canadian exports of Softwood Lumber Products to the United States;

 (b) ensure the effective administration of the customs-related aspects of the SLA 2006,
including Export Permits, volume restrain ts, data collection, and exchange of
information; and

 (c) review and provide recommendations on issues including:

 (i) matters referred to a Working Group pursuant to paragraph 3 of Article I;

(ii) the methodology established to calculate the Prevailing Monthly Price
referred to in Annex 7A;

(iii) the methodology established to determ ine U.S. Consumption as set forth in
Annex 7D; and

(iv) any other issues the Parties may join tly identify with respect to the operation
of Annexes 7A through 7D and Anne x 8, including, if required, the
development of an alternative verifi cation process to replace that provided
under Article XV(19).

ARTICLE XIV

Dispute settlement

1. Either Party may initiate dispute settlement under this Article regard ing any matter arising
under the SLA 2006 or with respect to the impl ementation of Regional exemptions from Export
Measures agreed upon by the Parties pursuant to Article XII.

2. Except as provided for in this Article, for the duration of the SLA 2006, including any
extension pursuant to Article XVIII, neither Part y shall initiate any litigation or dispute settlement
proceedings with respect to any matter arising under the SLA 2006, including proceedings pursuant to
the Marrakesh Agreement Establishing the World Trade Organization or Chapter Twenty of the
NAFTA. For purposes of this paragraph, "litigat ion or dispute settlemen t proceedings" does not
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

include actions related to alleged civil or crimin al violations, including USICE/USCBP investigations
or administrative penalty actions, or any proceedings related to such investigations or penalty actions.

3. Dispute settlement under this Article shal l be conducted as expeditiously as possible.

4. A Party may initiate dispute settlement under this Article by requesting in writing
consultations with the other Party regarding a ma tter arising under the SLA 2006. Unless the Parties
agree otherwise, the Parties shall consult within 20 days of delivery of the re quest. The Parties shall
make every attempt to arrive at a satisfactory reso lution of the matter through consultations and shall
exchange sufficient information to enable a full examination of the matter.

5. The Parties also may agree to submit the matter to non-binding mediation by a neutral third
party in addition to, or in lieu of, the arbitration procedures set out in this Article.

6. If the Parties do not resolve the matter with in 40 days of delivery of the request for
consultations, either Party may refer the matter to arbitration by delivering a written Request for
Arbitration to the Registrar of the LCIA Court. The arbitration shall be conducted under the LCIA
Arbitration Rules in effect on the date the SLA 2006 was signed, irrespective of any subsequent
amendments, as modified by the SLA 2006 or as the Parties may agree, except that Article 21 of the
LCIA Rules shall not apply.

7. An arbitral tribunal shall comprise 3 arbitrators.

8. No citizen or resident of a Party shall be appointed to the tribunal.

9. Each Party shall nominate one arbitrator w ithin 30 days after the date the arbitration
commences pursuant to LCIA Article 1.2. Unless th e Parties otherwise agree, if a Party fails to
nominate an arbitrator within 30 days, the LCIA Court shall nominate that arbitrator.

10. The 2 nominated arbitrators shall jointly nominate the Chair of the tribunal within 10 days
after the date on which the second arbitrator is no minated. The nominated arbitrators may consult
with the Parties in selecting the Chair. If the nomin ated arbitrators fail to nominate a Chair within 10
days, the LCIA Court shall endeavour to nominate the Chair within 20 days thereafter.

11. The LCIA Court shall endeavour to appoint th e 3 arbitrators thus nominated within 5 business
days after the date on which the Chair is nominated.

12. Arbitrators shall be remunerated and their expenses paid in accordance with LCIA rates.
Arbitrators shall keep a record and render a final ac count of their time and expenses, and the Chair of
the tribunal shall keep a record and render a final account of all general tribunal expenses.

13. The legal place of arbitration shall be L ondon, United Kingdom. All hearings shall be
conducted in the United States or Canada as the tribunal may decide in its discretion.

14. The International Bar Association Rules on the Taking of Evidence in International
Commercial Arbitration as adopted in 1999, as modified by the SLA 2006, shall apply in the
arbitrations held under the SLA 2006, except that Article 6 of those Rules shall not apply.

15. If a Party wishes to designate information to be used in the arbitration as confidential, the
tribunal shall establish, in consultation with the Pa rties, procedures for the designation and protection
of confidential information. The procedures sh all provide, as appropriate, for sharing confidential
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

information for purposes of the arbitration with c ounsel to softwood lumber industry representatives
or with provincial or state government officials.

16. Each Party shall promptly make the following documents available to the public, subject to
Article XVI and any procedures established under paragraph 15:

 (a) the Request for Arbitration;

 (b) pleadings, memorials, briefs, and any accompanying exhibits;

 (c) minutes or transcripts of hearings of the tribunal, where available; and

 (d) orders, awards, and decisions of the tribunal.

17. Hearings of the tribunal shall be open to the public. The tribunal shall determine, in
consultation with the Parties, a ppropriate arrangements for open hear ings, including the protection of
confidential information.

18. The tribunal shall give sympathetic consideration to domestic laws that:

 (a) preclude a Party from disclosing informa tion, when the tribunal determines whether
that information is privileged from disclosu re and whether to draw inferences from
the Party's failure to disclose such information; or

 (b) require a Party to disclose informati on subject to confidentiality procedures under
paragraph 15.

19. The tribunal shall endeavour to issue an awar d not later than 180 days after the LCIA Court
appoints the tribunal.

20. The tribunal's award shall be final and binding and shall not be subject to any appeal or other
review. An award may be enforced solely as provided in this Article.

21. The tribunal may not award costs. $US 10 m illion shall be allotted from the funds allocated
to the binational industry council described in Annex 13 to pay the costs of arbitrations under this
Article, including the costs of arbitrators, hearing fa cilities, transcripts, assistan ts to the tribunal, and
costs of the LCIA. Each Party shall bear its ow n costs, including costs of legal representation,
experts, witnesses and travel.

22. If the tribunal finds that a Party has breached an obligation under the SLA 2006, the tribunal
shall:

 (a) identify a reasonable period of time for th at Party to cure the breach, which shall be
the shortest reasonable period of time feasibl e and, in any event, not longer than 30
days from the date the tribunal issues the award; and

 (b) determine appropriate adjustments to the Export Measures to compensate for the
breach if that Party fails to cure the breach within the reasonable period of time.

23. The compensatory adjustments that the tribunal determines under paragraph 22(b) shall
consist of:
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

 (a) in the case of a breach by Canada, an increase in the Export Charge and/or a
reduction in the export volumes permitted unde r a volume restraint that Canada is
then applying or, if no Export Charge and/ or volume restraint is being applied, the
imposition of such Export Charge and/or volume restraint as appropriate; and

 (b) in the case of a breach by the United States, a decrease in the Export Charge and/or
an increase in the export volumes permitted under a volume restraint that Canada is
then applying.

Such adjustments shall be in an amount that remedies the breach.

24. Such adjustments may be applied from the e nd of the reasonable period of time until the Party
Complained Against cures the breach.

25. In the case of a breach by Canada attribut able to a particular Region, the tribunal shall
determine the compensatory adjustment applicable to that Region.

26. If Canada considers that the United States has failed to cure a breach by the end of the
reasonable period of time, Canada may make the compensatory adjustments that the tribunal has
determined under paragraph 22(b).

27. If the United States considers that Canada h as failed to cure a breach and has not made the
compensatory adjustments that the tribunal has dete rmined under paragraph 22(b) by the end of the
reasonable period of time, the United States may impose compensatory measures in the form of
volume restraints and/or customs duties on imports of Softwood Lumber Products from Canada, as
follows:

 (a) the amount of the volume restraints sh all not exceed the adjustment to the volume
restraints that the tribunal has determined; and

 (b) the customs duties shall not exceed the ad justment to the Export Charges that the
tribunal has determined.

28. Measures taken in accordance with paragraph 27 shall not be considered a breach of
Article V. For greater certainty, the United States may initiate an investigation or take action with
respect to Softwood Lumber Products under Sections 301 to 307 of the Trade Act of 1974 , solely for
the purpose of paragraph 27.

29. If, after the expiry of the reasonable period of time:

 (a) the United States considers that the compensatory adjustments that Canada is
applying reduce Export Charges or allow for export volumes beyond those that the
tribunal has determined under paragraph 22(b);

 (b) Canada considers that the compensator y measures the United States is applying
exceed the levels authorized for those measures under paragraph 27; or

 (c) the Party Complained Against considers that it has cured the breach, in whole or in
part, such that the compensatory adjustments or measures should be modified or
terminated, and the Complaining Party does not agree,
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

the Party may commence a new arbitration to address the matter, by delivering a written Request for
Arbitration to the Registrar of the LCIA Court.

30. In any arbitration initiated under paragraph 29, the LCIA shall appoint to the tribunal the
arbitrators comprising the original tr ibunal, to the extent they are available, within 10 days after the
Request for Arbitration is delivered. Any member of the original tribunal who is no longer available
shall be replaced in accordance with Article 11 of the LCIA Rules and paragraph 8. The tribunal shall
endeavour to issue its award within 60 days after de livery of the Request for Arbitration referred to in
paragraph 29.

31. If in its award in an arbitration initiated under paragraph 29, the tribunal finds that the
compensatory adjustments or measures that are the subj ect of the arbitration are inconsistent with the
award in the original arbitration or that the breach has been cured in whole or in part, the tribunal shall
determine the extent to which the compensatory adjustments or measures should be modified or
whether they should be terminated.

32. An award under paragraph 31 shall be eff ective as of the date that the compensatory
adjustments or measures were imposed and, accordingly, shall provide that:

 (a) Canada shall collect any Export Charge th at the tribunal finds it should have imposed
and the United States shall refund any customs duties that the tribunal finds it should
not have collected, retroactive to that date; and

 (b) Canada shall impose additional export volu me restraints to compensate for any excess
export volumes that the tribunal finds th at Canada has allowed and Canada may
increase the export volumes permitted under the export restraints to compensate for
any excess import restraints the tribunal finds that the United States has imposed
since that date, with these adjustments to be applied to exports from the pertinent
Region or Regions in equal monthly amounts during a period following the award as
determined by the tribunal.

ARTICLE XV

Information collection and exchange

A. Information Collection

1. Canada shall place Softwood Lumber Pr oducts on the Export Control List under the Export
and Import Permits Act , as amended, or any successor law, require an Export Permit for each
exportation to the United States of Softwood Lumber Products, and require any Person to which such
a permit is issued to keep records relating to its issuance for 60 months after the issuance of the
permit.

2. In connection with the issuance of an Export Permit under the Export and Import Permits Act,
as amended, or any successor law, Canada shall require each exporter to the United States of
Softwood Lumber Products to furnish to it the:

 (a) Exporter's Business Number;

 (b) name of exporter;
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

 (c) Region of Origin;

 (d) Customs Tariff (Canada) classification and product description;

 (e) quantity in board feet, cubic meters, or square meters in nominal terms;

 (f) Export Price;

 (g) U.S. port of entry;

 (h) anticipated U.S. entry date;

 (i) name of importer or consignee;

 (j) mode of transportation;

 (k) Export Permit number;

 (l) Canadian Date of Shipment; and

 (m) Maritime Lumber Bureau Certificate of Origin number, if applicable.

3. In addition to the entry and entry summary information otherwise required for importation
into the United States, the United States shall require importers of Softwood Lumber Products, under
Section 484 of the Tariff Act of 1930 , as amended, or any successor law, to furnish to it the Export
Permit number and if applicable the original Maritime Lumber Bureau Certificate of Origin for each
USCBP entry and may request additional information as provided under U.S. law.

4. Canada shall ensure that each Export Permit includes an Export Permit number that meets the
format requirement of USCBP Form 7501. USCBP sh all provide instructions on the required format
for the Export Permit number on USCBP Form 7501. USCBP shall require transmission of the
Export Permit number electronically to USCBP w ith the USCBP Form 7501 data elements. USCBP
shall also require the submission of an Export Permit number for merchandise referred to in Article X.
USCBP shall request the Export Permit, as needed, from the importer.

B. Information Exchange

5. The United States shall provide to Canada on a monthly basis, the data elements listed below
for each entry summary of Canadian Softwood Lumber Products filed during the preceding month:

 (a) Manufacturer Identification Number;

 (b) Province;
4

 (c) 10-digit HTSUS Code and descrip tion as provided on USCBP Form 7501;

4 After the date of signature of the SLA 2006, the United States shall initiate a process to designate
B.C. Coast and B.C. Interior as separate Regions for purposes of the SLA 2006. USCBP shall also provide
guidance to importers on how to report the Region of first manufacture or first mill manufacture.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

 (d) quantity in board feet, cubic meters, or s quare meters in nominal terms, as required by
the HTSUS;

 (e) Appraised Value ($US) as defined by USCBP;

 (f) U.S. port of entry;

 (g) USCBP entry number;

 (h) U.S. entry date;

 (i) name of importer or consignee;

 (j) mode of transportation; and

 (k) Export Permit number.

6. No later than 20 days after the end of each month, the Parties shall exchange on a monthly
basis aggregated Region-specific data collected pursu ant to paragraphs 2 and 5, for the purpose of
reconciling their data covering the preceding cale ndar month and the Year-to-date. Reconciliation
shall be quarterly and shall be completed within 4 months after the end of th e Quarter covered by the
reconciliation. The aggregated Region-specific data collected under subparagraphs 2(c) through (g)
shall not be treated as confidential under Article XVI.

7. Canada shall provide to the United States on a monthly basis data on the total charges it
assessed on exports of Softwood Lumber Products from each Region pursuant to the SLA 2006
covering the preceding calendar month and the Year-to-da te, broken out by type of charge or refund,
including any revisions. This information shall not be treated as confidential under Article XVI.

8. If the Parties cannot reconcile their Region-sp ecific aggregated data, they shall exchange
information regarding exports by specific exporters, importers, or manufacturers, and if necessary,
regarding specific exports and im ports, in order to achieve complete reconciliation within 9 months
after the end of the pertinent Quarter.

9. The Parties shall cooperate to detect and pr event false designations of Region of Origin and
false statements of export quantities. If necessary, USCBP may submit a request to the Bureau to visit
the premises of the manufacturer(s) of the goods at issue, in order to en sure compliance with the
Export and Import Permits Act, as amended, or any successor law. The Bureau shall conduct the visit
following consultations between the Parties to define the nature of the problem and to agree on the
information required by USCBP. The Bureau shall share information obtained relating to any such
visit with USCBP.

10. The United States shall notify and consult with Canada on any:

 (a) importation of Softwood Lumber Products from Canada that USCBP views as
requiring an Export Permit but for which an Export Permit number has not been
provided on USCBP Form 7501; and
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

 (b) customs investigation that USICE initiat es on or after the Effective Date regarding
the importation of Softwood Lumber Products.
5

11. Nothing in the SLA 2006 shall prevent a Party from imposing criminal, civil, or
administrative penalties for violations of its laws and regulations relating to the matters governed by
this Article.

12. Within 90 days after the Effective Date, Cana da shall provide to the United States a list of the
companies it has certified as Independent Manufacturers of Remanufactured Softwood Lumber
Products pursuant to Annex 7C. Canada shall notify the United States in writing of any change in this
list within 30 days after the change.

13. Canada shall notify the United States of an y new or amended federa l or provincial law,
regulation, order-in-council, or other measure governing timber pricing or forest management systems
related to Softwood Lumber Products, within 45 days after the measure is adopted or amended, as the
case may be.
6 This information shall not be treated as confidential under Article XVI. Each Party
shall respond to requests from the other for information relevant to the operation of the SLA 2006.

14. Canada shall notify the United States of any ch ange to a timber pricing or forest management
system Canada maintains is covered by paragraphs 2(a), 2(c), 2(d), or 4 of Article XVII, together with
an explanation of why it is covered, including an y evidence showing that such a change improves the
statistical accuracy and reliability of a timber pricing or forest management system or maintains or
improves the extent to which stumpage charges reflect market conditions, including prices and costs.

15. Based on sufficient information that it obtain s, Canada shall certify to the United States each
Quarter that, to the best of its knowledge and ability, it has no basis to believe that:

 (a) the timber pricing and forest management systems of the provinces have been
modified other than as notified in paragraph 14; and

 (b) the provinces are collecting revenues at levels lower than required under those
systems.

The sufficiency of the information that Canada obt ains under this paragraph shall not be subject to
arbitration pursuant to Article XIV.

16. The United States shall not use a request for in formation concerning the operation of the SLA
2006 to obtain information concerning the basis upon which Canada has made a certification under
paragraph 15.

17. Within 6 months after the end of each Quarter, to the extent possible, Canada shall provide
the United States with the total harvest volume of , and total revenues collected for Crown Softwood
Sawtimber within each Region during the Quarter. If a Region is subject to the MPS, Canada shall
provide in such reports the complete auction resu lts datasets used to derive the market modeling
regressions and coefficients and spreadsheets used fo r the calculation of the Average Market Price, if
any, and all information needed to monitor any updates or modifications.

5 For purposes of this subparagraph, any communi cation between the Parties shall be conducted
between the relevant agencies of the Parties.
6 This obligation shall not apply with respect to the Maritimes, Nunavut, Yukon, or the Northwest
Territories.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

18. The United States shall certify to Canada each month that, to the best of its knowledge and
ability, the following is correct:

 (a) the U.S. softwood lumber shipment data published by the Western Wood Products
Association (WWPA) is an unbiased estimate of actual shipments used in
determining U.S. Consumption; and

 (b) the FLC price published by Random Lengths Publishing Incorporated is an unbiased
estimate.

19. With respect to a data source referred to in paragraph 18:

 (a) either Party may, with the consent of a data source identified in paragraph 18, require
that an agreed-upon third-party professi onal accounting firm conduct an independent
audit of that data source, including verifi cation of the compilation of the data and the
accuracy of the input source data;

 (b) alternatively, the Parties may request a Technical Working Group established under
Article XIII(C) to verify the data; and

 (c) if a data source identified in paragra ph 18 refuses to consent to an audit under this
paragraph, or if the Parties agree on the basis of an audit or otherwise that such source
is an unreliable measure of shipments, exports or imports:

 (i) the Parties shall select an alternative data source, and

(ii) to the extent that historical data is shown to be biased or unreliable and
materially affected the Export Measures that were applied in a previous
period and in respect to which exporters within a Region relied in good faith
to their detriment, the Export Measures shall be re-adjusted on a retroactive
basis to take this into account.

ARTICLE XVI

Confidentiality

1. Each Party shall treat as confidential, in accord ance with its laws, information provided to it
under the SLA 2006, that is not otherwise publicly av ailable. Nothing in this Article shall be
construed to limit a Party's authority under its domestic law to exempt information from disclosure.

2. A Party shall refuse to disclose information ob tained in confidence from the other Party or an
institution thereof under the SLA 2006, unless the Pa rty providing the information consents to the
disclosure or the information is otherwise publicly available.

3. The information referred to in paragraphs 1 and 2:

 (a) may be used by and disclosed to govern ment officials solely in connection with the
implementation or operation of the SLA 2006 and subject to the disclosure
requirements of the receiving Party's law; and
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

 (b) shall not be used or disclosed in any trade action or investigation of the type referred
to in Article V except with the written permission of the Party or Person providing the
information.

4. Each Party shall handle information referred to in paragraphs 1 and 2 so as to prevent
unauthorized disclosure. However, the Parties may transmit the information through e-mail or by fax,
may process the information on unclassified comput er systems and may store the information in
locked filing cabinets or offices.

5. For greater certainty, the Parties affirm th at the following information shall be treated as non-
confidential, to the extent permissible under a Pa rty's domestic law and except insofar as it discloses
business confidential information:

 (a) reports and recommendations of co mmittees and working groups established under
the SLA 2006;

 (b) information provided under sub-pa ragraph 2(b)(ii) of Article XII;

 (c) information provided under paragraphs 12, 14 (excluding any notification,
explanation or evidence relating to Article XVII(2)(d)), and 17 of Article XV; and

 (d) information provided under sub- paragraph 5(b) of Article XVII.

ARTICLE XVII

Anti-circumvention

1. Neither Party, including any public authority of a Party, shall take action to circumvent or
offset the commitments under the SLA 2006, includi ng any action having the effect of reducing or
offsetting the Export Measures or undermining the commitments set forth in Article V.

2. Grants or other benefits that a Party, includi ng any public authority of a Party, provides shall
be considered to reduce or offset the Export Measures if they are provided on a de jure or de facto
basis to producers or exporters of Canadian Softwood Lumber Products. Notwithstanding the
foregoing, measures that shall not be considered to reduce or offset the Export Measures in the SLA
2006 include, without limitation:

 (a) provincial timber pricing or forest management systems as they existed on July 1,
2006, including any modifications or updates th at maintain or improve the extent to
which stumpage charges reflect market conditions, including prices and costs.
7
Fluctuations in stumpage charges that r esult from such modifications or updates,
including fluctuations resulting from chang es in market conditions or other factors
affecting the value of the province's timber, such as transportation costs, exchange
rates, and timber quality and natural ha rvesting conditions, do not constitute
circumvention. A provincial timber pricing or forest management system includes,
without limitation, the data, variables, and procedures it employs;

7 MPS Updates shall not be considered "modifications or updates" for purposes of this subparagraph.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

 (b) other government programs that provide benefits on a non-discretionary basis in the
form and the total aggregate amount in whic h they existed and were administered on
July 1, 2006;

 (c) actions or programs undertaken by a Party, including any public authority of a Party,
for the purpose of forest or environmental management, protection, or conservation,
including, without limitation, actions or pr ograms to reduce wildfire risk; protect
watersheds; protect, restore, or enhance forest ecosystems; or to facilitate public
access to and use of non-timber forest res ources, provided that such actions or
programs do not involve grants or other bene fits that have the effect of undermining
or counteracting movement toward the market pricing of timber;

 (d) payments or other compensation to First Nations to address or settle claims; and

 (e) measures that are not specific to the forest products industry.

3. Either Party may consult with the other if it believes the other Party has substantially failed to
enforce its legal requirements in a manner that has a material impact on the price or cost of harvesting
Softwood Sawtimber.

4. In respect of British Columbia:

 (a) the MPS shall be considered a provincial timber pricing or forest management system
that existed on July 1, 2006. Any acti on that conflicts with measures in the
documents listed in Article XXI(35) may constitute circumvention;

 (b) Canada warrants that a central purpose of the MPS is to implement a system that is
more sensitive to market forces than pre-existing systems. The MPS and fluctuations
in stumpage charges that result from the operation of the MPS, including fluctuations
resulting from changes in market conditions or other factors, such as transportation
costs, exchange rates, ti mber quality, and natural harv esting conditions, shall not
constitute circumvention of the SLA 2006 or offset its commitments;

 (c) modifications to the MPS that improve the statistical accuracy and reliability of the
MPS regression equations (that relate winni ng bids on, or th e number of bidders
participating in, timber auctions to e xplanatory variables) shall not constitute
circumvention of the SLA 2006 or offset its commitments; and

 (d) compensation that the Government of Br itish Columbia is legally obliged to pay for
tenure rights taken back by the Province a nd determined by binding arbitration or
negotiated settlements of legal claims approved by the Province's Minister of Finance
and that have been certified by the Province' s Attorney General as being in the public
interest, shall not constitute circumvention of the SLA 2006 or offset its
commitments.

5. In respect of exports of Softwood Lumber Pr oducts from the Maritimes to the United States
covered by an original Maritime Lumber Bureau Ce rtificate of Origin and that otherwise satisfy the
requirements of Article X(1)(a):

 (a) if, in any Quarter, the volume of expor ts exceeds the sum of the total production and
total inventory of Softwood Lumber Products first produced from logs originating in
the Maritimes or Maine in that Quarter, Ca nada shall retroactively collect a charge
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

from the exporters responsible for the exces s shipments. This charge shall equal
$C X, where X is determined according to the following formula:

 X = ($C 200 multiplied by the MBF export volume in excess of the sum of the
exporter's total production and total inve ntory of Softwood Lumber Products
produced from logs originating in the Maritimes or Maine during the Quarter)

 (b) within 60 days after the end of each Quarter, the Maritime Lumber Bureau shall
collect and submit to the Parties data on:

(i) total production and total inventor y of Softwood Lumber Products first
produced from logs originating in the Maritimes or Maine in the Quarter, and

(ii) exports of Softwood Lumber Produc ts from the Maritimes excluded from the
Export Measures under Article X(1)(a) that have been certified under the
Maritime Lumber Bureau Certificate of Origin Program; and

 (c) the Parties shall consult with the Ma ritime Lumber Bureau and shall exchange
information regarding any excess exports that either Party identifies.

6. Transfers of quota allocation between Persons in a particular Region shall not constitute
circumvention of the SLA 2006.

ARTICLE XVIII

Duration

The SLA 2006 shall remain in force for 7 years af ter the Effective Date and may be extended by
agreement of the Parties for an additional 2 years. The domestic interested parties that have filed the
letters in Annex 18, which shall be appended to Annex 18 on the Effective Date, shall not file
petitions, and shall oppose initiation of an inv estigation, pursuant to Title VII of the Tariff Act of
1930, as amended, or Sections 301 to 305 of the Trade Act of 1974 , as amended, with respect to
imports of Softwood Lumber Produc ts from Canada during the 12-month period after the expiration
of the SLA 2006 under this paragraph. In addition, the United States shall not self-initiate such
actions during that period. This paragraph shall not apply to a te rmination under any other provision
of the SLA 2006, including Article XX.

ARTICLE XIX

Amendment

The SLA 2006 may be amended at any time by the Parties in writing.

ARTICLE XX

Termination

1. At any time after the SLA 2006 has been in fo rce for 18 months, either Party may terminate
the SLA 2006 by providing 6-month written notice of the intent to terminate to the other Party. On
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

request of the Party receiving the notice, the Parties shall consult on the reasons for the termination.
If the United States terminates the SLA 2006 under this paragraph, the domestic interested parties that
have filed the letters in Annex 18, which shall be appended to Annex 18 on the Effective Date, shall
not file petitions, and shall oppose initiation of an investigation, pursuant to Title VII of the Tariff Act
of 1930, as amended, or Sections 301 to 305 of the Trade Act of 1974 , as amended, with respect to
imports of Softwood Lumber Pr oducts from Canada during the 12- month period after the SLA 2006
terminates. In addition, the United States shall not se lf-initiate such actions during that period. This
paragraph shall not apply to a termination unde r any other provision of the SLA 2006, including
paragraphs 2 through 4 of this Article or a termination by operation of Article XVIII.

2. If, pursuant to Article XIV:

 (a) Canada imposes compensatory adjustments under paragraph 26 of Article XIV, or

 (b) the United States imposes compensatory measures under paragraph 27 of
Article XIV,

the other Party may request in writing consultations to discuss the status of the SLA 2006. The
consultations shall be held within 10 days after the date on which the request is delivered. Following
the consultations, either Party may terminate the SLA 2006 by providing 1-month written notice of
the intent to terminate to the other Party.

3. The United States shall have the immediat e and unconditional right to terminate the SLA
2006 if Canada fails to apply the Export Measures.

4. Canada shall have the immediate and uncondi tional right to terminate the SLA 2006 if the
United States breaches its commitments in Article V.

ARTICLE XXI

Definitions

For purposes of the SLA 2006:

1. "ACH" or Automated Clearing House means a funds transfer system governed by the ACH
Rules, as defined in 31 CFR § 210.2, which provides for the interbank clearing of electronic
entries for participating financial institutions;

2. "AD Order" means the Antidumping Duty Order regarding Certain Softwood Lumber from
Canada, 67 Fed. Reg. 36,068 (May 22, 2002), as amended;

3. "Appraised Value" means the value of impor ted merchandise determined in accordance with
19 U.S.C. § 1401a or any successor statute;

4. "Associated Persons" means:

 (a) Persons related to each other in that:

(i) they are individuals connected by blood relationship, marriage, common-law
partnership, or adoption within the meaning of subsection 251(6) of the
Income Tax Act,
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

(ii) one is an officer or director of the other,

(iii) each such Person is an officer or director of the same 2 corporations,
associations, partnerships, or other organizations,

(iv) they are partners,

(v) one is the employer of the other,

(vi) they directly or indirectly control or are controlled by the same Person,

(vii) one directly or indirectly controls or is controlled by the other,

(viii) any other Person directly or indirectly owns, holds or controls 5% or more of
the outstanding voting stock or shares of each such Person, or

(ix) one directly or indirectly owns, holds or controls 5% or more of the
outstanding voting stock or shares of the other;

 o r

 (b) Persons not related to each other, but not d ealing with each other at arm's-length. It is
a question of fact whether Persons not related to each other were at a particular time
dealing with each other at arm's-length;

5. "B.C. Coast" means the Coastal Forest Regions as defined by the existing Forest Regions and
Districts Regulation, B.C. Reg. 123/2003;

6. "B.C. Interior" means the Northern Interior Forest Region and the Southern Interior Forest
Region as defined by the existing Forest Regions and Districts Regulation , B.C. Reg.
123/2003;

7. "Board foot" or "BF" means the lumber volum e equal to a one-inch board that is 12 inches in
width and one foot in length. When calculating board feet, nominal sizes are assumed;

8. "British Columbia" means the B.C. Coast and the B.C. Interior;

9. "Bureau" means the Export and Import Controls Bureau of the Department of Foreign Affairs
and International Trade;

10. "Canada" means, for purposes of the application of Export Measures, the territory to which
Canadian customs laws apply, including any areas beyond the territorial seas of Canada
within which, in accordance with internationa l law and its domestic law, the Government of
Canada may exercise rights with respect to the seabed and subsoil and their natural resources;

11. "CIT" means the U.S. Cour t of International Trade;

12. "Complaining Party" refers to the Party filing a Request for Arbitration;

13. "Covered Entries" means unliquidated entries that were subject to the AD Order and/or the
CVD Order;
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

14. "CRA" means Canada Revenue Agency;

15. "CVD Order" means the Countervailing Duty Order regarding Certain Softwood Lumber
from Canada, 67 Fed. Reg. 36,070 (May 22, 2002), as amended;

16. "Date of Shipment" means:

 (a) in the case of products exported by rail, the date when the railcar that contains the
products is assembled to form part of a train for export; and

 (b) in any other case, the date when the products are loaded aboard a conveyance for
export.

 If a shipment is transshipped through a Canadian reload or other inventory location, then the
Date of Shipment shall be the date on whic h the merchandise leaves the reload or other
inventory location for final shipment to the United States;

17. "Day" means a calendar day;

18. "Effective Date" means the date of entry into force of the SLA 2006 pursuant to Article II(1);

19. "Escrow Importer" means an Importer of Record that has fulfilled all of the requirements set
forth in paragraph 1 of Annex 2C;

20. "Existing" means existing on the Effective Date of the SLA 2006;

21. "Expected U.S. Consumption" means the exp ected level of U.S. Consumption defined and
calculated in accordance with paragraphs 12 through 14 of Annex 7D;

22. "Export Charge" means the charge levied by Canada on the Export Price of Softwood Lumber
Products exported to the United States at the rates specified in Articles VII through IX;

23. "Export Measures" means the measures in Articles VII through IX, Article X(2),
Article XII(2)(b)(i), and Article XVII(5)(a);

24. "Export Permit" means authority to export goods on the Export Control List (ECL), pursuant
to the Export and Import Permits Act, as amended, or any successor law;

25. "Export Price" means:

 (a) if the product has undergone only primary processing, the value that would be
determined FOB at the facility where the product underwent its last primary
processing before export;

 (b) if the product was last remanufactured be fore export by an Independent Manufacturer
of Remanufactured Softwood Lumber Products , the value that would be determined
FOB at the facility where the softwood lu mber used to make the remanufactured
product underwent its last primary processing;

 (c) if the product was last remanufactured be fore export by a remanufacturer that is not
an Independent Manufacturer of Remanuf actured Softwood Lumber Products, the
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

value that would be determined FOB at the facility where the product underwent its
last processing before export; or,

 (d) for a product described in paragraphs (a), (b) or (c) in respect of which an FOB value
cannot be determined, the market price fo r identical products sold in Canada at
approximately the same time and in an arm' s-length transaction, determined in one of
the following 3 ways, listed in order of preference:

(i) at substantially the same trade level but in different quantities;

(ii) at a different trade level but in similar quantities; or

(iii) at a different trade level and in different quantities;

26. "Exporter's Business Number" means the identifier assigned by the CRA to a registered
exporter of Softwood Lumber Products;

27. "FOB" means a value consisting of all charges payable by a purchaser including those
incurred in the placement on board of the conveyance for shipment, but not including the
actual shipping charges or charges levied pursuant to the SLA 2006;

28. "Household and Personal Effects" mean s merchandise classifiable under Chapter 98,
Subchapters IV, V, & VI of the HTSUS;

29. "HTSUS" means the Harmonized Tariff Schedule of the United States;

30. "Importers of Record" means corporations, sole proprietorships, partnerships or U.S. residents
that are importers of record for the purpo ses of U.S. law that imported Softwood Lumber
Products from Canada from May 22, 2002 to the Effective Date;

31. "Independent Manufacturer of Remanufact ured Softwood Lumber Products" means a
Canadian manufacturer of Remanufactured So ftwood Lumber Products that does not hold
Crown tenure rights and, after the Effective Da te, has not acquired standing timber directly
from the Crown, and is not an Associated Pe rson with respect to a Tenure Holder or any
Person that has acquired standing timber directly from the Crown;

32. "LCIA" means the London Court of International Arbitration;

33. "Manufacturer Identification Number" means the identifying code for a manufacturer or
shipper derived from its name and address as defined in 19 C.F.R. Part 102;

34. "Maritimes" means New Brunswick, Nova Sc otia, Prince Edward Island, and Newfoundland
and Labrador;

35. "Market Pricing System" or "MPS" means:

 (a) in the case of the B.C. Coast, the timbe r pricing policies and procedures in the Coast
Appraisal Manual in effect on July 1, 2006; and the description of the system in the
paper Market Pricing System – Coast (January 16, 2004); and

 (b) in the case of the B.C. Interior, the ti mber pricing policies and procedures in the
Interior Appraisal Manual in effect on July 1, 2006; its accompanying papers
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

Specifications: Calculation of the Interior Average Market Price; Specifications:
Calculation of Interior Stumpage Rates ( both dated July 1, 2006); and the description
of the MPS in the papers Interior Market Pricing System (June 1, 2006), Interior
Market Pricing System Average Market Price (June 5, 2006), Interior Market Pricing
System Tenure Obligation Adjustments (June 5, 2006), and Interior Market Pricing
System Specified Operations (June 5, 2006);

 For greater certainty, the B.C. Coast and B.C. Interior Appraisal Manuals in effect on July 1,
2006 are:

 (a) in the case of the B.C. Coast, the manua l dated February 29, 2004 and including all
amendments through July 1, 2006; and

 (b) in the case of the B.C. Interior, the ma nual dated November 1, 2004 and including all
amendments through July 1, 2006.

 The MPS includes any MPS Updates;

36. "MBF" means thousand board feet;

37. "MPS Updates" means any periodic revision to the Market Pricing System in accordance with
the methods and procedures described in the documents referenced in the definition of
"Market Pricing System" in paragraph 35. The MPS Updates to the Market Pricing System in
the B.C. Interior and in the B.C. Coast, as d escribed in the documents referred to in the
definition of Market Pricing System, use subs tantially the same methods and procedures.
MPS Updates shall come into force as amendments to, or new versions of, the Coast
Appraisal Manual or the Interior Appraisal Manual;

38. "NAFTA" means the North American Free Trade Agreement;

39. "Parties" means Canada and the United States;

40. "Party" means Canada or the United States;

41. "Party Complained Against" refers to the Party responding to a Request for Arbitration;

42. "Person" means a natural person, sole proprie torship, partnership, corporation, union, or
association;

43. "Prevailing Monthly Price" means the most re cent four-week average of the weekly framing
lumber composite ("FLC") prices available 21 da ys before the beginning of the month to
which the Prevailing Monthly Price shall be applied, as specified in Annex 7A;

44. "Quarter" means, unless otherwise specified, the three-month periods commencing January 1,
April 1, July 1 and October 1 of each Year;

45. "Region" means one of the following: Alberta, the B.C. Interior, the B.C. Coast, Manitoba,
Ontario, Saskatchewan, or Quebec;

46. "Region of Origin" means the Region wher e the facility at which the Softwood Lumber
Product was first produced into such a product is located, regardless of whether that product
was further processed (for example, by planing or kiln drying) or was transformed from one
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

Softwood Lumber Product into another such product (for example, a remanufactured product)
in another Region, with the following exceptions:

 (a) the Region of Origin of Softwood Lumb er Products first produced in the Maritime
Provinces from logs originating in a non- Maritime province shall be the Region
where the log originated; and

 (b) the Region of Origin of Softwood Lu mber Products first produced in the Yukon,
Northwest Territories or Nunavut (the "Terr itories") from logs originating outside the
Territories shall be the Region where the log originated;

47. "Remanufactured Softwood Lumber Products " means Softwood Lumber Products that are
produced by reprocessing lumber inputs by subj ecting such inputs to one or more of the
following: a change in thickness; a change in widt h; a change in length; a change in profile; a
change in texture; a change in moisture; a ch ange in grading; joining together by finger
jointing; turning; or other processes that produ ce components, semi-finished and/or finished
Softwood Lumber Products;

48. "Softwood Sawtimber" means timber used for production of Softwood Lumber Products;

49. "TIB" means that an entry summary supporting a temporary importation under bond has been
filed with USCBP in paper form and the entry of articles is brought into the United States
temporarily and claimed to be exempt from dut y under Chapter 98, Subchapter XIII of the
HTSUS;

50. "Tenure Holder" means a Person who holds specific rights to harvest timber in a Crown or
public forest;

51. "USCBP" means U.S. Customs and Border Protection;

52. "USDOC" means the U.S. Department of Commerce;

53. "USICE" means U.S. Immigration and Customs Enforcement;

54. "U.S. Consumption" means, in any period, (1) Canadian softwood lumber exports to the
United States, plus (2) U.S. softwood lumber imports from countries other than Canada, plus
(3) U.S. shipments of softwood lumber, minus (4) U.S. exports of softwood lumber, as set
forth in Annex 7D;

55. "United States" means, for purposes of importati on, the customs territory of the United States
and the foreign trade zones located in that territory;

56. "WTO" means the World Trade Organization; and

57. "Year" means, unless otherwise specified, th e 12-month period commencing on January 1 of
any year.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments,
have signed this Agreement.

DONE in duplicate at Ottawa, this 12th day of Sept ember 2006, in the English and French languages,
each version being equally authentic.

____________________________________ __________________________________
FOR THE FOR THE
GOVERNMENT OF CANADA GOVERNMENT OF THE UNITED
 STATES OF AMERICA
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEXES

ANNEX 1A Softwood Lumber Products

ANNEX 1B Canadian Table of Concordance – Harmonized Tariff Schedule of the United
States (2006) with Canadian Tariff Equivalent

ANNEX 2A Termination of Litigation Agreement

ANNEX 2B Notification of Mutually Agreed Solution

ANNEX 2C Assignment of Cash Deposits and Disbursement of Payments

ANNEX 3 USDOC Liquidation Instructions to USCBP

ANNEX 5A Template for "No Injury" Letters from the U.S. Domestic Interested Parties

ANNEX 5B Finding of the U.S. Department of Commerce

ANNEX 7A Prevailing Monthly Price

ANNEX 7B Calculation of Quota Volumes for Option B

ANNEX 7C Procedure for Certifying Independent Remanufacturers

ANNEX 7D Calculation of U.S. Consumption and Market Shares

ANNEX 8 Calculation of Regional Trigger Volumes

ANNEX 10 Excluded Companies

ANNEX 12 Working Group on Regional Exemptions

ANNEX 13 The North American Initiative on Lumber

ANNEX 18 Template for Supplemental Letters from the Members of the U.S. Industry
Which Have Filed Letters as Described in Annex 5A
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

ANNEX 1A

Softwood Lumber Products

1. The products covered by the SLA 2006 are soft wood lumber, flooring and siding ("Softwood
Lumber Products"). Softwood Lumber Products in clude all products classified under subheadings
4407.1000, 4409.1010, 4409.1020, and 4409.1090, respectively, of the HTSUS, and any softwood
lumber, flooring, and siding described below. These Softwood Lumber Products include:

 (a) coniferous wood, sawn or chipped lengt hwise, sliced or peeled, whether or not
planed, sanded or finger-jointed, of a thickness exceeding 6 millimeters;

 (b) coniferous wood siding (including st rips and friezes for parquet flooring, not
assembled) continuously shaped (tongued, gr ooved, rabbeted, chamfered, v-jointed,
beaded, molded, rounded, or the like) along any of its edges or faces, whether or not
planed, sanded, or finger-jointed;

 (c) other coniferous wood (including strips and fri ezes for parquet flooring, not
assembled) continuously shaped (tongued, gr ooved, rabbeted, chamfered, v-jointed,
beaded, molded, rounded, or the like) along any of its edges or faces (other than wood
moldings and wood dowel rods) whether or not planed, sanded, or finger-jointed;

 (d) coniferous wood flooring (including st rips and friezes for parquet flooring, not
assembled) continuously shaped (tongued, gr ooved, rabbeted, chamfered, v-jointed,
beaded, molded, rounded, or the like) along any of its edges or faces, whether or not
planed, sanded, or finger-jointed; and

 (e) coniferous drilled and notched lumber and angle cut lumber.

Other merchandise that shall be included in the definition of Softwood Lumber Products are:

 (f) any product entering under HTSUS 4409.10.05 which is continually shaped along its
end and/or side edges which otherwise c onforms to the written definition of the
scope; and

 (g) lumber products that USCBP may classi fy as stringers, radius cut box-spring-frame
components, and fence pickets, not confor ming to the criteria listed in paragraph 4
below, as well as truss components, pallet components, and door and window frame
parts, which may be classified unde r HTSUS subheadings 4418.90.45.90,
4421.90.70.40, and 4421.90.97.40.

2. Although the HTSUS subheadings are provi ded for convenience and USCBP purposes, the
written description of the merchandise subject to the SLA 2006 is dispositive.

3. The following Softwood Lumber Products are excluded from the scope of the SLA 2006:

 (a) trusses and truss kits, properly classified under HTSUS 4418.90;

 (b) I-Joist beams;

 (c) assembled box spring frames;
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

 (d) pallets and pallet kits, prop erly classified under HTSUS 4415.20;

 (e) garage doors;

 (f) edge-glued wood, properly cl assified under HTSUS 4421.90.97.40;

 (g) properly classified complete door frames;

 (h) properly classified complete window frames;

 (i) properly classified furniture;

 (j) articles brought into the United States te mporarily and claimed to be exempt from
duty under Chapter 98, Subchapter XIII, of the HTSUS (TIB); and

 (k) household and personal effects.

4. The following Softwood Lumber Products are excluded from the scope of the SLA 2006
provided that they meet the specified requirements detailed below:

 (a) stringers (pallet components used for runne rs); if they have at least two notches on
the side, positioned at equal distance from the center, to properly accommodate
forklift blades, properly classified under HTSUS 4421.90.97.40;

 (b) box-spring frame kits, if they contain the following wooden pieces – two side rails;
two end (or top) rails; and varying numbers of slats. The side rails and the end rails
should be radius-cut at both ends. The kits should be individually packaged, and
should contain the exact number of wooden co mponents needed to make a particular
box spring frame, with no further processing required. None of the components
exceeds 1 inch in actual thickness or 83 inches in length;

 (c) radius-cut box-spring-frame components, not exceeding 1 inch in actual thickness or
83 inches in length, ready for assembly wit hout further processing. The radius cuts
must be present on both ends of the boards and must be substantial cuts so as to
completely round one corner;

 (d) fence pickets requiring no further processing and properly classified under HTSUS
4421.90.70, 1 inch or less in actual thickness, up to 8 inches wide, and 6 feet or less
in length, and having finials or decorative cuttings that clearly identify them as fence
pickets. In the case of dog-eared fence pick ets, the corners of the boards should be
cut off so as to remove pieces of wood in th e shape of isosceles right angle triangles
with sides measuring 3/4 of an inch or more;

 (e) U.S.-origin lumber shipped to Canada for minor processing and imported into the
United States, is excluded from the scope of the SLA 2006 if the following conditions
are met: (1) if the processing occurring in Canada is limited to kiln drying, planing to
create smooth-to-size board, and sanding, a nd (2) if the importer establishes to the
satisfaction of USCBP that the lumber is of U.S. origin; and

 (f) in addition, all Softwood Lumber Products entered claiming non-subject status based
on U.S. country of origin shall be treated as excluded under the SLA 2006, provided
that these Softwood Lumber Products meet the following condition: upon entry, the
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

importer, exporter, Canadian processor a nd/or original U.S. producer establish to
USCBP's satisfaction that the softwood lumber entered and documented as U.S.-
origin softwood lumber was first produced in the United States as a lumber product
satisfying the physical parameters of the softwood lumber scope.

5. Softwood Lumber Products contained in singl e family home packages or kits, regardless of
tariff classification, are excluded from the scope of the SLA 2006 if the importer certifies to items (a),
(b), (c), and (d) and requirement (e) is met:

 (a) the imported home package or kit consti tutes a full package of the number of wooden
pieces specified in the plan, design or bl ueprint necessary to produce a home of at
least 700 square feet produced to a specified plan, design or blueprint;

 (b) the package or kit must contain all necessary internal and external doors and
windows, nails, screws, glue, sub floor, sh eathing, beams, posts, connectors, and if
included in the purchase contract, decking, trim, drywall and roof shingles specified
in the plan, design or blueprint;

 (c) prior to importation, the package or kit must be sold to a retailer in the United States
of complete home packages or kits pursuant to a valid purchase contract referencing
the particular home design plan or blueprint, and signed by a customer not affiliated
with the importer;

 (d) Softwood Lumber Products entered as part of a single family home package or kit,
whether in a single entry or multiple entries on multiple days, will be used solely for
the construction of the single family home specified by the home design matching the
USCBP import entry; and

 (e) for each entry into the United States, the following documentation must be retained
by the importer and made available to USCBP upon request:

(i) a copy of the appropriate home design plan, or blueprint matching the
customs entry in the United States,

(ii) a purchase contract from a retailer of home kits or packages signed by a
customer not affiliated with the importer,

(iii) a listing of inventory of all parts of the package or kit being entered into the
United States that conforms to the home design package being imported, and

(iv) in the case of multiple shipments on th e same contract, all items listed in (iii)
which are included in the shipment at issue shall be identified as well.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEX 1B

Canadian Table of Concordance - Harmonized Tariff Schedule of the United States
(2006) with Canadian tariff equivalent*
8

These tables list classification provisions for all products under paragraphs 1(a) through 1(g),
paragraphs 3(a) through 3(k), and paragraph 4 of Annex 1A. Finali zation of this concordance is
subject to U.S. review and consultation at any time before the Effective Date.

I. Table relative to HTSUS references in Annex 1A (1) (a) through (g)

Heading/Subheading
HTSUS 2006 Stat. Suffix Article Description
Canadian
Customs
Tariff
(CCT)
4407.10.00 Wood sawn or chipped lengthwise, sliced
or peeled, whether or not planed, sanded
or finger-jointed, of a thickness exceeding
6mm
 Coniferous
4407.10.00
 01 Finger-jointed 4407.10.00.11
 Other
 02 Treated with paint, stain, creosote, or
other preservative
4407.10.00.12
 Not treated
 15 Mixtures of spruce, pine, and fir
("S-P-F")
4407.10.00.13
 16 Mixtures of western hemlock and
amabilis fir (hem-fir)
4407.10.00.14
 Other:
 17 Sitka Spruce (Picea sitchensis)
 Rough
4407.10.00.32
 18 Other 4407.10.00.22
 19 Other Spruce
 Rough
4407.10.00.33
 20 Other 4407.10.00.23
 42 Eastern White pine (Pinus Strobus) and
red pine (Pinus resinosa):
 Rough
4407.10.00.52,
4407.10.00.53
 43 Other 4407.10.00.42,
4407.10.00.43
 44 Lodgepole pine (Pinus contorta):
 Rough
4407.10.00.54
 45 Other 4407.10.00.44

8 Customs Tariff, S.C. 1997, c. 36, Sch. 1.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

 46 Southern yellow pine (Loblolly pine
(Pinus taeda)), long leaf pine (Pinus
palustris), pitch pine (Pinus rigida), short
leaf pine (Pinus echinata), slash pine
(Pinus elliottii) and Virginia pine (Pinus
virginiana)

 Rough
4407.10.00.55,
4407.10.00.56
 47 Other 4407.10.00.45,
4407.10.00.46
 48 Ponderosa pine (Pinus ponderosa):
 Rough
4407.10.00.51
 49 Other 4407.10.00.41
 52 Other pine
 Rough
4407.10.00.59
 53 Other 4407.10.00.49
 54 Douglas-fir (Pseudotsuga menziesii)
 Rough
 Having a minimum dimension of less
than 5.1 cm
4407.10.00.81
 55 Douglas-fir
 Rough
 Having a minimum dimension of 5.1 cm
or more but less than 12.7 cm
4407.10.00.82
 56 Douglas-fir
 Rough
Having a minimum dimension of 12.7 cm
or more
4407.10.00.83
 57 Other (Douglas-fir) 4407.10.00.89
 58 Fir (Abies spp.)
 Rough
4407.10.00.36
 59 Other 4407.10.00.26
 64 Hemlock (Tsuga spp.)
 Rough
4407.10.00.35
 65 Other 4407.10.00.25
 66 Larch (Larix spp.)
 Rough
4407.10.00.31
 67 Other 4407.10.00.21
 68 Western Red Cedar
 Rough
4407.10.00.71
 69 Other 4407.10.00.61
 74 Yellow Cedar (Chamaecyparis
nootkanensis)
 Rough
4407.10.00.72
 75 Other 4407.10.00.62
 76 Other Cedar (Thuja spp., Juniperus spp.,
Chamaecyparis spp., Cupressus spp. and
Libocedrus spp.)
 Rough
4407.10.00.79
 77 Other 4407.10.00.69
 82 Redwood (Sequois sempervirens) 4407.10.00.34
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

 Rough
 83 Other 4407.10.00.24
 92 Other
 Rough
4407.10.00.92
 93 Other 4407.10.00.91
4409.10.10 20 Wood siding
 Resawn bevel siding:
 Western red cedar
4409.10.00.40
 40 Other 4409.10.00.40
 60 Other: Western red cedar 4409.10.00.40
 80 Other 4409.10.00.40
4409.10.90 Other Coniferous Wood
 20 Western Red Cedar 4409.10.00.90
 40 Other 4409.10.00.90
4409.10.20 00 Wood flooring 4409.10.00.20
4409.10.05 00 Wood continuously shaped along any of
its ends, whether or not also continuously
shaped along any of its edges or faces, all
the foregoing whether or not planed
sanded or end-jointed
4409.10.00.90
 Builders' joinery and carpentry of wood,
including cellular wood panels and
assembled parquet panels; shingles and
shakes

4418.90.45 90 Other, Other, Other 4418.90.00.99
 Other Articles of Wood
4421.90.70 40 Pickets, palings, posts and rails, the
foregoing which are sawn; assembled
fence sections
 Other
4421.90.90.60
4421.90.97 40 Other
 Other
4421.90.90.99

* 1.(e) Drilled and notched lumber and angle cu t lumber – No concordance of HS numbers is
possible under this provision as it applies to all Softwood Lumber Products covered under the SLA
2006, regardless of their classification.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

II. Table relative to HTSUS references in Annex 1A (3) (a) through (k)

HTSUS Excluded Product Canadian Customs Tariff

4418.90 (a) trusses and truss kits 4418.90
N/A (b) I-Joist beams 4418.90
N/A (c) Assembled box spring frames 4421.90
4415.20 (d) Pallets and pallet kits 4415.20
N/A (e) Garage doors 4418.20
4421.90.97.40 (f) Edge-glued wood 4421.90
N/A (g) Complete Door Frames 4418.20
N/A (h) Complete Window frames 4418.10
N/A (i) Furniture Chapters 44, 94
 (j) Articles brought into the United States
temporarily and claimed to be exempt from
duty under Chapter 98, Subchapter XIII of the
HTSUS (TIB)
Chapters 98, 99
N/A (k) Household and Personal Effects (Too broad in scope, not
possible to concord)

III. HTSUS references in Annex 1A (4)

HTSUS 4421.90.97.40 (Stringers) (See above: Table relative to HTSUS references in Annex 1A (1)
(a) through (g))

HTSUS 4421.90.70 (Fence Pickets) (See above: Table relative to HTSUS references in Annex 1A (1)
(a) through (g))
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEX 2A

Termination of Litigation Agreement

1. This Termination of Litigation Agreement (T ermination Agreement) is a full and complete
settlement of the issues raised by all of the parties in the following actions (the "Covered Actions"):

 Certain Softwood Lumber Products from Canada (Original AD Investigation) , Secretariat
File No. USA-CDA-2002-1904-02;

 Certain Softwood Lumber Products from C anada (CVD 1st Administrative Review) ,
Secretariat File No. USA-CDA-2005-1904-01;

 Certain Softwood Lumber Products from Canada (Section 129 Threat-of-Injury
Determination), Secretariat File No. USA-CDA-2005-1904-03;

 Certain Softwood Lumber Products from Canada (Section 129 AD Determination) ,
Secretariat File No. USA-CDA-2005-1904-04;

 Certain Softwood Lumber Products from Canada (AD 2
nd Administrative Review), Secretariat
File No. USA-CDA-2006-1904-01;

 Certain Softwood Lumber Products from Canada (CVD 2
nd Administrative Review) ,
Secretariat File No. USA-CDA-2006-1904-02;

 Certain Softwood Lumber Products from Canada (Final Scope Ruling Regarding Entries
Made Under HTSUS 4409.10.05), Secretariat File No. USA-CDA-2006-1904-05;

 Certain Softwood Lumber Products from Canada , Secretariat File No. ECC-2006-1904-
01USA;

 Tembec v. United States (Consol. Ct. No. 05-00028 (CIT)) and the cases consolidated therein;

 West Fraser v. United States (Consol. Ct. No. 05-00079 (CIT)) and the cases consolidated
therein;

 Ontario Forest Industries Association et al. v. United States (Court No. 06-00156 (CIT));

 West Fraser v. United States (Consol. Court No. 06-00157 (CIT)) and the cases consolidated
therein;

 Ontario Forest Industries Association et al. v. Canada (Court No. 06-168 (CIT));

 Tembec et al. v. United States (Civil Action No. 05-2345 (U.S. District Ct. for the District of
Columbia));

 Coalition for Fair Lumber Imports Executive Committee v. United States (Civil Action No.
05-1366 (D.C. Cir.));

 CLTA v. United States (Civil Action No. 05-1369 (D.C. Cir.));
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

 Ontario Forest Industries Association et al. v. Canada et al. (Civil Action No. 06-989 (U.S.
District Ct. for the District of Columbia));

 Ontario Forest Industries Association et al. v. United States (Civil Action No. 06-1171 (D.C.
Cir.));

 NAFTA Chapter 11 claim of Tembec Inc., Tembec Investments Inc. and Tembec Industries
Inc. v. United States of America (collectively "Tembec"); and

 The Consolidated Arbitration Pursuant to Ar ticle 1126 of the North American Free Trade
Agreement (NAFTA) and the UNCITRAL Arbitration Rules between Canfor Corporation v.
United States of America and Terminal Forest Products Ltd. v. United States of America.

2. The parties irrevocably consent to the termination of the Covered Actions by the filing of the
documents referenced in paragraph 3 on the date the 2006 Softwood Lumber Agreement Between the
Government of Canada and the Government of the United States of America ("SLA 2006") enters into
force, provided that on that date:

 (a) the Countervailing Duty Order regardi ng Certain Softwood Lumber from Canada, 67
Fed. Reg. 36,070 (May 22, 2002), as amended, and the Antidumping Duty Order
regarding Certain Softwood Lumber from Canada, 67 Fed. Reg. 36,068 (May 22,
2002), as amended (the "Orders"), are retr oactively revoked in their entirety as of
May 22, 2002 without the possibility that they could be reinstated;

 (b) the U.S. Department of Commerce (" USDOC") terminates all USDOC proceedings
related to the Orders; and

 (c) USDOC has prepared the liquidation inst ructions attached as Annex 3 to the SLA
2006 and has committed to provide them to US CBP within 3 days after the date the
SLA 2006 enters into force to ensure that no cash deposits are collected on the basis
of the Orders on or after the date the SLA 2006 enters into force.

3. Canada or the United States, as the case may be , shall file consent motions for termination or
notices of dismissal of the Covered Actions on th e date the SLA 2006 enters into force. This
Termination Agreement and a letter from the Unit ed States certifying the full satisfaction of the
preconditions for termination liste d in subparagraphs 2(a) through 2(c) shall constitute proof of
unanimous consent to the termination of the Covered Actions.

4. Canada and the United States shall request dism issal of any new lawsuits concerning the same
subject matter as the Covered Actions that are filed before the date of entry into force of the SLA
2006.

5. No party to this Termination Agreement sha ll seek to hold any other party liable to pay its
costs and expenses of litigation relating to the Covered Actions.

6. This Termination Agreement is without prejudi ce to the position of any party on any issue in
the Covered Actions.

7. The parties shall not re-file any of the Covered Actions.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

8. For purposes of paragraphs 4, 5, and 7, Certain Softwood Lumber Products from Canada
(Original CVD Investigation) , Secretariat File No. USA-CDA-2002-1904-03 shall be treated in the
same manner as a Covered Action.

9. This Termination Agreement may not be altered, amended, modified, or otherwise changed
other than through the written agreement of all parties hereto.

10. This Termination Agreement shall bind the pa rties, their officers, directors, employees,
predecessors, subsidiaries, heirs, executors, administrators, agents, successors, and assigns.

11. As evidence of their consent to this Termina tion Agreement, the parties, through their duly-
authorized Representatives, have signed below with resp ect to each of the actions to which they are a
party.

12. This Termination Agreement may be executed in counterparts, each one of which shall be
deemed an original and all of which together shall constitute one and the same Termination
Agreement.

By:
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

Signature Pages for Termination of Litigation Agreement

By: _________________________ Dated: ______, 2006
Donald B. Cameron
Kaye Scholer, LLP
901 15th Street, NW.
Suite 1100
Washington, DC 20005-2327

Counsel for 46501 BC Ltd., A.J. Forest Products Ltd.,
Allmac Lumber Sales Ltd., Aquila Cedar Produc ts Ltd., Arbutus Manufacturing Ltd., Canfor
Corporation, Carrier Forest Products Ltd., Carrier Lu mber Ltd., Cheslatta Forest Products Ltd., Stuart
Lake Lumber Company Ltd., Stuart Lake Market ing Corporation (aka Stuart Lake Marketing
Inc.),West Chilcotin Forest Products, B&L Forest Products Ltd., Bakerview Forest Products Inc.,
Bridgeside Forest Industries, Ltd. (Bridgeside Higa Forest Industries Ltd.), Canyon Lumber Company
Ltd., Cardinal Lumber Manufacturing & Sales Inc., Central Cedar Ltd., Centurion Lumber
Manufacturing (1983) Ltd., Chasyn Wood Technologies Inc., City Lumber Sales and Services Ltd.,
Coast Clear Wood Ltd., Cooper Creek Cedar Ltd., Dakeryn Industries Ltd., Davron Forest Products
Ltd., Delta Pacific Lumber Sales Inc., Doubletree Forest Products Ltd., ER Probyn Export Ltd.,
Errington Cedar Products Ltd., Faulkner Wood Sp ecialties Limited (Faulk ener Wood Specialities
Limited), Forwest Wood Specialties Inc., Fraser Paci fic Lumber Company, Fraser Pulp Chips Ltd.,
Fraserview Cedar Products Ltd., Goldwood Industri es Ltd., Greenwood Forest Products (1983) Ltd.,
Hilmoe Forest Products Ltd., Howe Sound Forest Products (2005) Ltd., Galloway Lumber Ltd.,
Hudson Mitchell & Sons Lumber Inc., J.H. Huscroft Ltd., Jones Ties & Poles (1978) Ltd.,
Kalesnnikoff Lumber Co., Ltd., Pope & Talbot Inc. (and its wholly owned subs idiary Pope & Talbot
Ltd.), Sigurdson Bros. Logging Company Ltd. (aka Sigurdson Brothers Logging Company Ltd.),
Hyak Specialty Wood Products Ltd., Jasco Forest Products Ltd., Jazz Forest Products Ltd., Kenwood
Lumber Ltd., Kootenay Innovative Wood Ltd., Lak eside Timber Ltd., Land mark Truss & Lumber
Inc., Leslie Forest Products Ltd., Lindal Ceda r Homes Company, Mid Valley Lumber Specialties
Ltd., Mountain View Specialty Products Inc., North Shore Timber Ltd., North Star Wholesale Lumber
Ltd., Olympic Industries Inc., Oregon-Canadian Hold ings Inc., Pacific Lumber Remanufacturing Inc.,
Pacific Specialty Wood Products Ltd. (formerly Clearwood Industries Ltd.), Pallan Timber Products
(2000) Ltd., Paragon Industries Ltd., Paragon Ventur es Ltd. (Vernon Kiln and Millwork, Ltd. and
582912 BC, Ltd.), Pat Power Forest Products Corpor ation, Peak Forest Products Ltd., Porcupine
Wood Products Ltd., Port Moody
Timber Ltd., Power Wood Corp., 637537 B.C. Ltd., Quadra Wood Products Ltd., Raintree Lumber
Specialties Ltd., Rielly Industrial Lumber Inc., Sa warne Lumber Co. Ltd., Seed Timber Co. Ltd.,
Seymour Creek Cedar Products Ltd., Shawood Lumb er Inc., Sylvanex Lumber Products Inc., Top
Quality Lumber Ltd., Teal Cedar Products Lt d., Teal-Jones Group and Teal-Jones Sales Ltd.,
Terminal Forest Products Ltd., TFL Forest Ltd. (aka TimberWest Forest Corp. and TimberWest
Forest Company), TPI Timber Products Internationa l (1975) Ltd., Twin Rive rs Cedar Products Ltd.,
Uphill Wood Supply Inc., Vancouver Specialty Ceda r Products Ltd. (aka Va ncouver Specialty Cedar
Products), Vandermeet Forest Products (Canada) Ltd., Visscher Lumber Inc., Welco Lumber
Corporation, and West Bay Forest Products and Manufacturing Ltd. (aka West Bay Forest Products &
Mfg. Ltd. and West Bay Forest Products & Manufacturing Ltd.), Wynndel Box & Lumber Co. Ltd.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Michael T. Shor
Arnold & Porter, LLP
555 Twelfth Street, NW.
Washington, DC 20004-1206

Counsel for Abitibi-Consolidated, Inc., Abitibi-Cons olidated Company of Canada, Buchanan Lumber
Sales Inc. et al , Dunkley Lumber Ltd., Produits Fo restiers La Tuque Inc., Pr oduits Forestiers Petits
Paris Inc., Produits Forestiers Saguenay Inc ., Societe En Commandite Opitciwan, Abitibi-LP
Engineered Wood Inc., Alberta Spruce Industries Ltd., Buchanan Lumber, a division of Gordon
Buchanan Enterprises Ltd., Treeline Wood Products Ltd., Gestofor Inc., Northland Forest Products
Ltd., La Crete Sawmills Ltd., and Vanderwell Contractors (1971) Ltd.

By: _________________________ Dated: ______, 2006
George R. Tuttle
Law Offices of George R. Tuttle
Three Embarcadero Center
Suite 1160
San Francisco, CA 94111

Counsel for Anderson Wholesale Inc., North Pacific Trading, Western Rail Ltd.

By: _________________________ Dated: ______, 2006
Elliot J. Feldman
Baker & Hostetler, LLP
Washington Square, Suite 1100
1050 Connecticut Avenue, NW.
Washington, DC 20036-5304

Counsel for Apex Forest Products Inc., Aspen Plan ers Ltd., Buchanan Lumb er Sales Inc. and the
Buchanan affiliated mills (including Atikokan For est Products Ltd., Buchanan Forest Products Ltd.,
Buchanan Northern Hardwood Inc., Dubreuil Forest Products Limited, Great West Timber Limited,
Long Lake Forest Products Inc., McKenzie Forest Products Inc., Nakina Fo rest Products Limited,
Northern Sawmills Inc., Northern Wood, and Solid Wood Products Inc.), Devlin Timber (1992) Ltd.,
Domtar Inc., Downie Timber Ltd., Federated Co -operatives Limited, Gorman Bros. Lumber Ltd.,
Haida Forest Products Ltd., Kenora Forest Products Ltd., Lecours Lumber Co. Limited, Liskeard
Lumber Limited, Manitou Forest Products Ltd., Mi dway Lumber Mills Ltd., Mill & Timber Products
Ltd., Nickel Lake Lumber, North Enderby Distribution Ltd., North Enderby Timber Ltd., Olav
Haavaldsrud Timber Company Limited, R. Fryer Forest Products Limited, Selkirk Specialty Wood
Ltd., Tall Tree Lumber Co., Tembec Inc., and Ty ee Timber Products Ltd., Canadian American
Business Council, Free Trade Lumber Council, Long Lake Forest Products Inc., Ontario Forest
Industries Association and its members, Ontario Lumber Manufacturers Association and its members
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
B. Thomas Peele, III
Baker & McKenzie, LLP
815 Connecticut Avenue, NW.
Suite 900
Washington, DC 20006-4078

Counsel for Apollo Forest Products Limited,
Buchanan Lumber Sales Inc. et al, Canadian Fo rest Products Ltd., Canfor Corporation and its
affiliates, Canfor Wood Products Marketing Ltd., Lakeland Mills Ltd., Nechako Lumber Co., Ltd.;
Slocan Forest Products Ltd., Winton Global Lumber Ltd. The Pas Lumber Co. Ltd. (Winton Global
Lumber Ltd.), Bois Daaquam Inc., Sinclair En terprises, Ltd., T'loh Forest Products Limited
Partnership, and Crystal Forest Industries Ltd.

By: _________________________ Dated: ______, 2006
Christopher F. Corr
White & Case, LLP
701 Thirteenth Street, NW.
Washington, DC 20005-3807

Counsel for Buchanan Distribution Inc., Buchanan Forest Products Ltd., Buchanan Lumber Sales
Inc., Buchanan Northern Hardwood Inc., Atikokan Forest Products Ltd., Northern Sawmills Inc.,
Great West Timber Limited, McKenzie Forest Products Inc., Northern Wood, Dubreuil Forest
Products, Long Lake Forest Products Inc. . (includi ng the Nakina division (Nakina Forest Products)),
Solid Wood Products Inc.

By: _________________________ Dated: ______, 2006
Catherine Curtiss
Hughes Hubbard & Reid
1775 I Street N.W.
Suite 600
Washington, D.C. 20006

Counsel for Bois Daaquam Inc., Bois Omega Li mitee, Fontaine Inc., Maibec Industries Inc.,
Materiaux Blanchet Inc., St. Pamphile and Scierie West Brome Inc.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Robert C. Cassidy, Jr.
Wilmer, Cutler, Pickering, Hale & Dorr, LLP
2445 M Street, NW.
Washington, DC 20037-1420

Counsel for Bowater Incorporated and Its Ca nadian Subsidiaries et al., Quebec Lumber
Manufacturers Association ("QLMA") and certain Quebec lumber producers, including Armand
Duhamel & Fils Inc.; Bardeaux et Cedres St-H onore Inc. (also known as Bardeaux et Cedres);
Barrette-Chapais Ltée.; Beaubois Coaticook Inc.; Blanch ette et Blanchette Inc.; Boisaco Inc.; Bois
Cobodex (1995) Inc.; Bois Daaquam Inc. (also known as Daaquam Lumber Inc.) Bois d'oeuvre
Cedrico Inc. (also known as Cedrico Lumber Inc.); Bois de l'Est F.B. Inc.; Bois Granval G.D.S. Inc.;
Bois Kheops Inc.; Bois Marsoui G.D.S. Inc. ; Bois Nor Que Wood Inc.; Boscus Canada Inc.;
Byrnexco Inc.; Careau Bois Inc; Carrier & Begi n Inc.; Commonwealth Plywood Company Ltd. doing
business as Bois Clo-Val (formerly Bois Clo-Val In c.), W.C. Edwards Lumber (formerly The W.C.
Edwards Co., Ltd.) and Enterprises Atlas (formerly Les Enterprises Atlas (1985) Inc.); Domexport,
Inc.; Domtar Inc.; E. Tremblay Et Fils Ltée.; Fenc lo Ltée.; G.D.S. Valoribois Inc.; Industries G.D.S.
Inc.; Industries Maibec Inc. (also known as Maibec I ndustries Inc.); Industries Perron Inc.; Les Bois
S&P Grondin Inc.; Les Chantiers de Chibougamau Ltée.; Les Produits Forestiers D.G. Ltée.; Les
Produits Forestiers Dubé Inc.; Les Produits Fores tiers F.B.M. Inc.; Les Produits Forestiers Maxibois
Inc.; Les Produits Forestiers Miradas Inc. (also known as Miradas Forest Products Inc.); Les Produits
Forestiers Portbec Ltée. (also known as Portbec For est Products Ltd.); Les Scieries Du Lac St.-Jean
Inc.; Lulumco Inc.; Marcel Lauzon Inc.; Matéria ux Blanchet Inc.; Max Meilleur et Fils Ltée.;
Mobilier Rustique (Beauce) Inc.; Optibois Inc.; Paul Vallée Inc.; Précibois Inc.; Produits Forestiers
Arbec Inc. (also known as Arbec Forest Products In c.); Promobois G.D.S. Inc.; Rembos Inc.; Rocam
Lumber Inc. (also known as Bois Rocam Inc.); Sc ierie Gauthier Ltée.; Scierie Leduc, Division of
Stadacona Inc.; Scierie Nord-Sud Inc. (also known as North-South Sawmill Inc.). Uniforêt Inc.; and
Uniforêt Scierie-Pâte

By: _________________________ Dated: ______, 2006
Mark A. Moran
Steptoe & Johnson, LLP
1330 Connecticut Avenue, NW.
Washington, DC 20036-1795

Counsel for British Columbia Lumber Trade Council and its constituent associations, the Coast Forest
Products Association (formerly known as the Coast Fo rest & Lumber Association) and the Council of
Forest Industries, and their members, Canadi an Lumber Trade Alliance and its constituent
associations
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
W. George Grandison
Steptoe & Johnson, LLP
1330 Connecticut Avenue, NW.
Washington, DC 20036-1795

British Columbia Lumber Trade Council and its co nstituent associations, The Coast Forest Products
Association (formerly known as the Coast Forest & Lumber Association) and the Council of Forest
Industries, and their members (Abitibi CIT action)

By: _________________________ Dated: ______, 2006
Randolph J. Stayin
Barnes & Thornburg
750 17th Street, NW.
Suite 900
Washington, DC 20006

Counsel for Canadian Lumber Remanufacturers Alliance ("CLRA") Alpa Mills, Inc., American
Bayridge Corporation, Bois Neos Inc., Britannia Lumber Company Limited, Falcon Lumber Limited,
Finmac Lumber Limited, Great Lakes MSR Lumber Ltd., Hughes Lumber Specialties Inc., Les Bois
d'Ouevre Beaudoin & Gauthier Inc., Mid Ameri ca Lumber, Monterra Lumber Mills Limited,
Nicholson and Cates Limited, Palliser Lumber Sa les Ltd., Phoenix Forest Products Inc., Weston
Forest Corp.

By: _________________________ Dated: ______, 2006
Matthew M. Nolan
Arent Fox Kintner Plotkin & Kahn, PLLC
1050 Connecticut Avenue, NW.
Washington, DC 20036-5339

Counsel for International Forest Products Limited

By: _________________________ Dated: ______, 2006
Harry L. Clark
Dewey Ballantine, LLP
1775 Pennsylvania Avenue, NW.
Washington, DC 20006-4605

Counsel for Coalition for Fair Lumber Imports Executive Committee
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Keith Richard Marino
Arent Fox Kintner Plotkin & Kahn, PLLC
1050 Connecticut Avenue, NW.
Washington, DC 20036-5339

Counsel for Commonwealth Plywood Co., Ltd.

By: _________________________ Dated: ______, 2006
Joel R. Junker
Joel R. Junker & Associates
1191 Second Avenue
Suite 1800
Seattle, WA 98101

Counsel for Delta Cedar Products Ltd., Kispi ox Forest Products; Millco Wood Products Ltd.,
Olympic Industries Inc.; Patrick Lumber Company; Sauder Industries Ltd., Sauder Mouldings, Inc.
(Ferndale), Sunbury Cedar Sales Ltd.; and W.I. Woodtone Industries Inc.

By: _________________________ Dated: ______, 2006
Charles Owen Verrill, Jr.
Wiley Rein & Fielding LLP
1776 K Street, N.W.
Washington, D.C. 20006

Counsel for Western Forest Products Inc.

By: _________________________ Dated: ______, 2006
Gracia M. Berg
Gibson, Dunn & Crutcher, LLP
1050 Connecticut Avenue, NW.
Suite 900
Washington, DC 20036-5306

Counsel for Doman Industries Limited, Doman Forest Products Limited, and Doman Western Lumber
Ltd. (now doing business as Western Forest Products Inc. and its subsidiaries, WFP Forest Products
Limited, WFP Western Lumber Ltd., and WFP Lumber Sales Limited), Millar Western Forest
Products Ltd., Tolko Industries Ltd., Weldwood of Canada Limited, West Fraser Mills Ltd.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Daniel J. Plaine
Gibson, Dunn & Crutcher, LLP
1050 Connecticut Avenue, NW.
Suite 900
Washington, DC 20036-5306

Counsel for Weldwood of Canada Limited, West Fraser Mills Ltd., WFP Forest Products Limited,
WFP Lumber Sales Limited, Western Forest Products Inc.

By: _________________________ Dated: ______, 2006
Daniel L. Porter
Willkie, Farr & Gallagher, LLP
1875 K Street, NW.
Washington, DC 20006-1238

Counsel for Dunkley Lumber Ltd.

By: _________________________ Dated: ______, 2006
Ned H. Marshak
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
399 Park Avenue
25th Floor
New York, NY 10022-4877

Counsel for East Fraser Fiber Co. Ltd. a nd Parallel Wood Products Ltd., Jackpine Group of
Companies: Jackpine Forest Products Ltd., Jackpi ne Engineered Wood Products Inc., and Redwood
Value Added Products Inc.

By: _________________________ Dated: ______, 2006
Livingston Wernecke
Betts, Patterson & Mines, PS
One Convention Place
701 Pike Street
Suite 1400
Seattle, WA 98101-3927

Counsel for Fred Tebb & Sons, Inc.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Gregory C. Dorris
Pepper Hamilton LLP
Hamilton Square, 600 Fourteenth Street, N.W.
Washington, District of Columbia 20005-2004

Counsel for Frontier Mills Inc., Landmark Truss & Lumber Inc.

By: _________________________ Dated: ______, 2006
Matthew J. Clark
Arent Fox Kintner Plotkin & Kahn, PLLC
1050 Connecticut Avenue, NW.
Washington, DC 20036-5339

Counsel for Gouvernement du Québec, Fontaine Inc ., Kruger Inc. (and its affiliates Gerard Crete &
Fils, Inc., Scierie Landrienne Inc., Scierie Gallichan , and P. Proulx Forest Products Inc.), and Scierie
Nord-Sud

By: _________________________ Dated: ______, 2006
Mark R. Sandstrom
Law Offices of Mark R. Sandstrom
1400 Sixteenth Street, N.W.
Suite 400
Washington, D.C.

Counsel for Goodfellow Inc.

By: _________________________ Dated: ______, 2006
Lawrence A. Schneider
Arnold & Porter, LLP
555 Twelfth Street, NW.
Washington, DC 20004-1206

Counsel for Government of the Province of Alberta

By: _________________________ Dated: ______, 2006
Spencer S. Griffith
Akin, Gump, Strauss, Hauer & Feld, LLP
Robert S. Strauss Building
1333 New Hampshire Avenue, N.W.
Washington, D.C. 20036

Counsel for Government of the Province of British Columbia
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Mark S. McConnell
Hogan & Hartson, LLP
555 Thirteenth Street, NW.
Washington, DC 20004-1109

Counsel for Government of the Province of Ontario

By: _________________________ Dated: ______, 2006
Michele Sherman Davenport
Cameron & Hornbostel LLP
818 Connecticut Ave., N.W.
Washington, D.C. 20006-2722

Counsel for the Government of the Province of Manitoba and the Government of the Province of
Saskatchewan

By: _________________________ Dated: ______, 2006
J. E. Corette, III
DLA Piper Rudnick Gray Cary US LLP
1200 Nineteenth Street, NW.
Washington, DC 20036-2412

Counsel for Governments of the Provinces of New Brunswick, Nova Scotia, Newfoundland and
Labrador, and Prince Edward Island ("Maritime Provinces"), Maritime Lumber Bureau

By: _________________________ Dated: ______, 2006
Paul C. Rosenthal
Kelley Drye Collier Shannon
3050 K Street, N.W.
Suite 400
Washington, D.C. 20007-5108

Counsel for Idaho Timber Corporation, Louisiana Pacific Corporation
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Robert B. Luce
General Counsel
Idaho Timber Corporation
5401 Kendall Street
P.O. Box 67
Boise, Idaho 83706

Idaho Timber Corporation

By: _________________________ Dated: ______, 2006
Juliana M. Cofrancesco
Howrey Simon Arnold & White, LLP
1299 Pennsylvania Avenue, NW.
Washington, DC 20004-2402

Counsel for J.D. Irving, Limited, the Government s of the Provinces of New Brunswick, Nova Scotia,
Newfoundland and Labrador, and Prince Edward Is land ("Maritime Provinces"), Maritime Lumber
Bureau

By: _________________________ Dated: ______, 2006
William D. Kramer
DLA Piper Rudnick Gray Cary US LLP
1200 Nineteenth Street, NW.
Washington, DC 20036-2412

Counsel for J.D. Irving, Limited

By: _________________________ Dated: ______, 2006
Frank H. Morgan
White & Case, LLP
701 Thirteenth Street, NW.
Washington, DC 20005-3807

Counsel for Leggett & Platt (B.C.) Ltd., Leggett & Pl att, Inc., Leggett & Platt Canada Co., Leggett &
Platt Ltd., Pleasant Valley Remanufacturing Ltd.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Donald Harrison
Gibson, Dunn & Crutcher, LLP
1050 Connecticut Avenue, NW.
Suite 900
Washington, DC 20036-5306

Counsel for Lignum Ltd., Tolko Industries Ltd., and its affiliates, Gilbert Smith Forest Products Ltd.,
Compwood Products Ltd., and Pinnacle Wood Produc ts Ltd., Tolko Marketing & Sales Ltd.,
Riverside Forest Products Ltd.

By: _________________________ Dated: ______, 2006
C. Charles Lumbert
P.O. Box 454
Jackman, Maine 40945

Moose River Lumber Company

By: _________________________ Dated: ______, 2006
Richard Bennett
Rt. 1
Box 2L
Grangeville, ID 83530

Shearer Lumber Products

By: _________________________ Dated: ______, 2006
Charles Thomas
PO Box 25
Shuqualak, MS 31069

Shuqualak Lumber Company

By: _________________________ Dated: ______, 2006
M. Jean Anderson
Weil, Gotshal & Manges, LLP
1300 Eye Street, NW.
Suite 900
Washington, DC 20005

Counsel for the Government of Canada and the Governments of the Northwest Territories and the
Yukon Territory
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Seth P. Waxman
Wilmer, Cutler, Pickering, Hale & Dorr, LLP
1875 Pennsylvania Avenue, NW.
Washington, DC 20006-3642

Counsel for the Government of Canada

By: _________________________ Dated: ______, 2006
W.J. Rusty Wood
PO Drawer E
Perry, Georgia 31069

Tolleson Lumber Company, Inc.

By: _________________________ Dated: ______, 2006
Pierre Moreau
8000 Boulevard Langelier
Bureau 506
Saint-Léonard, Québec H1P 3K2

Uniforet Inc.

By: _________________________ Dated: ______, 2006
Reginald T. Blades, Jr.
U.S. Department of Justice
Commerical Litigation Branch - Civil Division
1100 L Street, NW.
8th Floor
Washington, DC 20530

Counsel for the United States in West Fraser v. United States (Consol. Ct. No. 05-00079 (CIT)) and
the cases consolidated therein
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
Stephen C. Tosini
U.S. Department of Justice
Commercial Litigation Branch - Civil Division
1100 L Street, NW.
Room 12020
Washington, DC 20530

Counsel for the United States in Tembec v. United States (Consol. Ct. No. 05-00028 (CIT)) and the
cases consolidated therein; Ontario Forest Industries Association et al. v. United States (Court No.
06-00156 (CIT)); West Fraser v. United States (Consol. Court No. 06-00157 (CIT)) and the cases
consolidated therein; and Ontario Forest Industries Association et al. v. Canada (Court No. 06-168
(CIT))

By: _________________________ Dated: ______, 2006
Alexander Kenneth Haas
U.S. Department of Justice
20 Massachusetts Avenue, NW
Washington, D.C.

Counsel for the United States in Tembec et al. v. United States (Civil Action No. 05-2345 (U.S.
District Ct. for the District of Columbia)); and Ontario Forest Industries Association et al. v. Canada
et al. (Civil Action No. 06-989 (U.S. District Ct. for the District of Columbia))

By: _________________________ Dated: ______, 2006
Douglas N. Letter
Litigation Counsel
U.S. Department of Justice
Civil Division, Appellate Staff
950 Pennsylvania Avenue N.W.
Room 7513
Washington, D.C. 20530-0001

Counsel for the United States in Coalition for Fair Lumber Imports Executive Committee v. United
States (Civil Action No. 05-1366 (D.C. Cir.)); CLTA v. United States (Civil Action No. 05-1369 (D.C.
Cir.)); and Ontario Forest Industries Association et al. v. United States (Civil Action No. 06-1171
(D.C. Cir.))
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
John D. McInerney
U.S. Department of Commerce
14th & Constitution Avenue, N.W.
Room 3622
Washington, D.C. 20230

Counsel for United States De partment of Commerce in Certain Softwood Lumber Products from
Canada (Original AD Investigation) , Secretariat File No. USA-CDA-2002-1904-02; Certain
Softwood Lumber Products from C anada (Original CVD Investigation) , Secretariat File No. USA-
CDA-2002-1904-03; Certain Softwood Lumber Products from Canada (CVD 1
st Administrative
Review), Secretariat File No. USA-CDA-2005-1904-01; Certain Softwood Lumber Products from
Canada (Section 129 AD Determination) , Secretariat File No. USA-CDA-2005-1904-04; Certain
Softwood Lumber Products from Canada (AD 2 nd Administrative Review), Secretariat File No. USA-
CDA-2006-1904-01; Certain Softwood Lumber Products from Canada (CVD 2 nd Administrative
Review), Secretariat File No. USA-CDA-2006-1904-02; and Certain Softwood Lumber Products from
Canada (Final Scope Ruling Regarding En tries Made Under HTSUS 4409.10.05) , Secretariat File
No. USA-CDA-2006-1904-05

By: _________________________ Dated: ______, 2006
Andrea J. Menaker
Chief, NAFTA Arbitration Division
Office of the Legal Adviser
U.S. Department of State
Washington, D.C.

Counsel for the United States with resp ect to the NAFTA Chapter 11 claim of Tembec Inc., Tembec
Investments Inc. and Tembec Industries Inc. v. United States of America (collectively "Tembec"); and
The Consolidated Arbitration Pursuant to Article 1126 of the North American Free Trade Agreement
(NAFTA) and the UNCITRAL Arbitration Rules between Canfor Corporation v. United States of
America and Terminal Forest Products Ltd. v. United States of America

By: _________________________ Dated: ______, 2006
James M. Lyons
Office of the General Counsel
USITC
500 E Street S.W.
Washington, D.C. 20436

Counsel for United States International Trade Commission in Certain Softwood Lumber Products
from Canada (Section 129 Threat-of-Injury Determination) , Secretariat File No. USA-CDA-2005-
1904-03
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

By: _________________________ Dated: ______, 2006
William Busis
Office of the United States Trade Representative
600 – 17th Street, N.W.
Washington, D.C. 20508

Counsel for the United States in Certain Softwood Lumber Products from Canada , Secretariat File
No. ECC-2006-1904-01USA

By: _________________________ Dated: ______, 2006
John R. Shane
Wiley, Rein & Fielding, LLP
1776 K Street, NW.
Washington, DC 20006-2304

Counsel for Western Forest Products Inc.

By: _________________________ Dated: ______, 2006
James B. Altman
Miller & Chevalier Chartered
655 Fifteenth Street, NW.
Suite 900
Washington, DC 20005-5701

Counsel for Weyerhaeuser Company, Weyerhaeuser Company Limited, Weyerhaeuser Saskatchewan
Limited
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEX 2B

United States - Preliminary Determinations with respect to Certain Softwood Lumber
from Canada (DS236);

United States - Provisional Anti-Dumping Measure on
Imports of Certain Softwood Lumber from Canada (DS247);

United States - Final Countervailing Duty Determination
with respect to Certain Softwood Lumber from Canada (DS257);

United States - Final Dumping Determination on Softwood Lumber from Canada (DS264);

United States - Investigation of the International Trade Commission
in Softwood Lumber from Canada (DS277); and

United States - Reviews Of Countervailing Duty on Softwood Lumber from Canada (DS311).

Notification of Mutually Agreed Solution

 The Governments of Canada and the United St ates hereby notify the Dispute Settlement Body
in accordance with Article 3.6 of the DSU that they have reached a mutually agreed solution to the
matters raised by Canada in document WT/DS 236/1 dated 27 August 2001, WT/DS247/1 dated
12 March 2002, WT/DS257/1 dated 13 May 20 02, WT/DS264/1 dated 19 September 2002,
WT/DS277/1 dated 7 January 2003, and WT/DS311/1 dated 19 April 2004. This solution has taken
the form of a comprehensive agreement between Cana da and the United States, resolving all disputes
related to trade in softwood lumber between our two countries. A copy of the Softwood Lumber
Agreement is attached.

 This mutually agreed solution is without pr ejudice to the WTO rights and obligations of
Canada and the United States except with respect to the disputes listed above.

 We ask that you circulate this notification to the relevant Councils and Committees, as well as
to the Dispute Settlement Body.

Don Stephenson Peter F. Allgeier
Ambassador and Permanent Representative of Ambassador and Permanent Representative
Canada to the World Trade Organization of the United States to the World Trade
 Organization
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

ANNEX 2C

Assignment of Cash Deposits and
Disbursement of Payments

1. To qualify as an Escrow Importer, an Importer of Record must:

 (a) provide USCBP Headquarters with an ACH Agreement, a bank routing number, and
a bank account number for a designate of the Importer of Record;

 (b) conclude Irrevocable Powers of Atto rney and an Escrow Agreement with its
designate (both in a form satisfactory to the United States and Canada and its agent);
and

 (c) conclude with Canada or its agent an Agreement of Purchase and Sale that includes
Irrevocable Directions to Pay and other doc umentation (all of which shall be in a
form satisfactory to the United States and Ca nada and its agent) that Canada or its
agent requires to purchase its rights to the amounts of cash deposits and accrued
interest for Covered Entries.

2. USCBP shall provide Canada with inform ation and documentation demonstrating that
USCBP has received the documentation described in s ub-paragraph 1(a) for Importers of Record that
collectively account for not less than 95% of the total amount of the cash deposits on Covered Entries
and accrued interest as of the Effective Date.

3. Beginning on June 30, 2006, USCBP shall provide to Canada or its agent in 2-week intervals
information and documentation for the purchases describ ed in paragraph 6, including a list of the
Importers of Record, and for each Importer of Reco rd the amount of cash deposits and the amount of
accrued interest for each Covered Entry in both aggreg ate and entry-by-entry formats. No later than
10 days after the Effective Date, USCBP shall provide Canada or its agent with a final and complete
list of the amount of cash deposits and the amount of accrued interest for each Covered Entry for each
Escrow Importer. Canada or its agent may provide each Importer of Record with the information and
documentation that USCBP provides to Canada in respect of that Importer of Record.

4. By the Effective Date, the United States shal l provide Canada or its agent with information
identifying separate accounts whose beneficiaries are respectively:

 (a) the members of the Coalition for Fair Lumber Imports;

 (b) a binational industry council described in Annex 13; and

 (c) meritorious initiatives in the United States identified by the United States in
consultation with Canada as described in Article XIII(A).

5. Canada or its agent shall distribute $US 1 b illion pursuant to the Irrevocable Directions to Pay
to the accounts referred to in pa ragraph 4 in the following amounts: $US 500 million to the members
of the Coalition for Fair Lumber Imports, $US 50 million to the binational industry council, and
$US 450 million for meritorious initiatives.

6. The United States understands that Canada or its agent shall purchase from the Escrow
Importers the rights to the amount of cash deposits stated in USCBP records and accrued interest for
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

the Covered Entries. The purchase price
9 paid to an Escrow Importer shall not exceed the amount of
cash deposits and accrued interest on its Covere d Entries on the purchase date less the amounts
directed to accounts specified in paragraph 4. Canada or its agent may make payments in installments
in respect of these purchases. Each Escrow Importe r in the Agreements of Purchase and Sale shall
irrevocably direct Canada or its agent to pay a por tion of each installment to the specified accounts in
paragraph 4 in an amount that is proportionate to $US 1 billion divided by the total amount of cash
deposits to be refunded to all Impor ters of Record and the interest accrued as of the Effective Date.
Canada shall pay the difference between $US 1 bi llion and the aggregate amount directed by the
Escrow Importers into these specified accounts. Canada shall seek to ensure that an amount equal to
90% of the amount of cash deposits and accrued inte rest is disbursed no later than 6 weeks after
Canada or its agent receives the final list of the cash deposits and accrued interest referred to in
paragraph 3, with the remaining 10% to be disbursed within 6 months of the Effective Date.

7. The Irrevocable Direction to Pay in the Agreem ent of Purchase and Sale shall not be subject
to amendment without the written consent of the United States.

8. The United States shall liquidate Covered Entri es starting with entries that are or will become
more than 4 years old during the first 6 months of the liquidation process and followed by entries that
will become more than 4 years old during any s ubsequent extension under 19 U.S.C. § 1504(b) and
19 C.F.R. § 159.12.

9. The United States shall not consider the paym ents to Escrow Importers under Article IV and
this Annex to be a prohibited, actionable, or count ervailable subsidy and shall neither consider such
payments to be a basis for initiating a countervailing duty investigation nor investigate such payments
in the course of any such investigation.

9 Canada or its agent shall assume administrative costs associated with the purchase of the rights to the
amount of cash deposits and accrued interest.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

ANNEX 3

USDOC Liquidation Instructions to USCBP

RE: NOTICE OF REVOCATION OF THE ANTIDUMPING DUTY ORDER AND
TERMINATION OF ANTIDUMPING DUTY REVIEWS RELATED TO CERTAIN SOFTWOOD
LUMBER FROM CANADA FOR THE PERIOD 05/22/2002 THROUGH XX/XX/XXXX
([A-122-838])

1. THE DEPARTMENT OF COMMERCE HAS REVOKED THE ANTIDUMPING DUTY
ORDER AND TERMINATED ALL REVIEWS ON CERTAIN SOFTWOOD LUMBER FROM
CANADA PURSUANT TO THE SOFTWOOD LUMBER AGREEMENT BETWEEN THE
GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES. THE
EFFECTIVE DATE OF REVOCATION IS 05/22/2002.

2. THEREFORE, CBP IS DIRECTED TO CEASE COLLECTION OF CASH DEPOSITS
AND TERMINATE IMMEDIATELY THE SUSPENSION OF LIQUIDATION FOR ALL
SHIPMENTS OF CERTAIN SOFTWOOD LUMBER FROM CANADA ENTERED, OR
WITHDRAWN FROM WAREHOUSE, FOR C ONSUMPTION ON OR AFTER MAY 22, 2002.
ALL UNLIQUIDATED ENTRIES OF THE SUBJECT MERCHANDISE THAT WERE ENTERED
OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION, ON OR AFTER MAY 22, 2002,
THE LIQUIDATION OF WHICH IS SUSPENDED, SHOULD BE LIQUIDATED WITHOUT
REGARD TO ANTIDUMPING DUTIES (I.E., RELEASE ALL BONDS AND REFUND ALL
CASH DEPOSITS) AND ALL DEPOSITS SHALL BE REFUNDED WITH ACCRUED INTEREST
TO THE IMPORTERS OF RECORD OR THEIR DESIGNATES.

3. THE ASSESSMENT OF ANTIDUMPING DUTIES BY CUSTOMS AND BORDER
PROTECTION ON ENTRIES OF THIS MERCHANDISE IS SUBJECT TO THE PROVISIONS OF
SECTION 778 OF THE TARIFF ACT OF 1930. SECTION 778 REQUIRES THAT CBP PAYS
INTEREST ON OVERPAYMENTS, OR ASSESS INTEREST ON UNDERPAYMENTS OF THE
REQUIRED AMOUNTS DEPOSITED AS ESTIMATED ANTIDUMPING DUTIES. INTEREST
SHALL BE CALCULATED FROM THE DATE OF PAYMENT OF ESTIMATED
ANTIDUMPING DUTIES THROUGH THE DATE OF LIQUIDATION. THE RATE AT WHICH
SUCH INTEREST IS PAYABLE IS THE RATE IN EFFECT UNDER SECTION 6621 OF THE
INTERNAL REVENUE CODE OF 1954 FOR SUCH PERIOD.

4. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CBP OFFICERS,
THE IMPORTING PUBLIC OR INTERESTED PARTIES, PLEASE CONTACT DAVINA
HASHMI OR RON TRENTHAM AT OFFICE OF AD/CVD OPERATIONS, IMPORT
ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF
COMMERCE, AT (202) 482-0984 OR (202) 482-3577 RESPECTIVELY (GENERATED BY
O(Office Number):

Analyst's Initials (Example: O2:RL)).

5. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION.
 CATHY SAUCEDA
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

RE: NOTICE OF REVOCATION OF THE COUNTERVAILING DUTY ORDER AND
TERMINATION OF COUNTERVAILING DUTY REVIEWS RELATED TO CERTAIN
SOFTWOOD LUMBER FROM CANADA FOR THE PERIOD 05/22/2002 THROUGH
XX/XX/XXXX ([C-122-839])

1. THE DEPARTMENT OF COMMERCE HAS REVOKED THE COUNTERVAILING
DUTY ORDER AND TERMINATED ALL REVIEWS, ON CERTAIN SOFTWOOD LUMBER
FROM CANADA PURSUANT TO THE SOFTWOOD LUMBER AGREEMENT BETWEEN THE
GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES. THE
EFFECTIVE DATE OF REVOCATION IS 05/22/2002.

2. THEREFORE, CBP IS DIRECTED TO CEASE COLLECTION OF CASH DEPOSITS
AND TERMINATE IMMEDIATELY THE SUSPENSION OF LIQUIDATION FOR ALL
SHIPMENTS OF CERTAIN SOFTWOOD LUMBER FROM CANADA ENTERED, OR
WITHDRAWN FROM WAREHOUSE, FOR C ONSUMPTION ON OR AFTER MAY 22, 2002.
ALL UNLIQUIDATED ENTRIES OF THE SUBJECT MERCHANDISE THAT WERE ENTERED
OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION, ON OR AFTER MAY 22, 2002,
THE LIQUIDATION OF WHICH IS SUSPENDED, SHOULD BE LIQUIDATED WITHOUT
REGARD TO COUNTERVAILING DUTIES (I.E ., RELEASE ALL BONDS AND REFUND ALL
CASH DEPOSITS) AND ALL DEPOSITS SHALL BE REFUNDED WITH ACCRUED INTEREST
TO THE IMPORTERS OF RECORD OR THEIR DESIGNATES.

3. THE ASSESSMENT OF COUNTERVAILING DUTIES BY CUSTOMS AND BORDER
PROTECTION ON ENTRIES OF THIS MERCHANDISE IS SUBJECT TO THE PROVISIONS OF
SECTION 778 OF THE TARIFF ACT OF 1930. SECTION 778 REQUIRES THAT CBP PAYS
INTEREST ON OVERPAYMENTS, OR ASSESS INTEREST ON UNDERPAYMENTS OF THE
REQUIRED AMOUNTS DEPOSITED AS ESTIMATED COUNTERVAILING DUTIES.
INTEREST SHALL BE CALCULATED FROM THE DATE OF PAYMENT OF ESTIMATED
COUNTERVAILING DUTIES THROUGH THE DATE OF LIQUIDATION. THE RATE AT
WHICH SUCH INTEREST IS PAYABLE IS THE RATE IN EFFECT UNDER SECTION 6621 OF
THE INTERNAL REVENUE CODE OF 1954 FOR SUCH PERIOD.

4. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CBP OFFICERS,
THE IMPORTING PUBLIC OR INTERESTED PARTIES, PLEASE CONTACT DAVINA
HASHMI OR RON TRENTHAM AT OFFICE OF AD/CVD OPERATIONS, IMPORT
ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF
COMMERCE, AT (202) 482-0984 OR (202) 482-3577 RESPECTIVELY (GENERATED BY
O(Office Number):

Analyst's Initials (Example: O2:RL)).

5. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION.
 CATHY SAUCEDA
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

ANNEX 5A

Template for "No Injury" Letters from
U.S. Domestic Interested Parties

Dear USTR Schwab and Secretary Gutierrez:

Company A commends the spirit of cooperation in which the United States and Canada negotiated the
Softwood Lumber Agreement Between the Government of Canada and the Government of the United
States of America (the SLA 2006). Company A makes the following representations and
commitments to the U.S. Government:

1. Company A is a U.S. producer of softwood lumber. The softwood lumber production of
Company A in 2005 was [ ], which represents [ ] percent of total U.S. softwood lumber
production in 2005.

[2. [Name/Title] of Company A serves on the ex ecutive committee of the Coalition for Fair
Lumber Imports.]

3. Company A represents that the SLA 2006 remove s any alleged material injury or threat of
material injury, within the meaning of 19 U.S.C. § 1677(7), to the U.S. softwood lumber
industry from imports of Softwood Lumber Pr oducts from Canada. This representation is
made taking into account all relevant facts, in cluding possible changes in market conditions,
and the consequences that the representations will have for the term of the SLA 2006,
including the intentions of the U.S. Depart ment of Commerce (Commerce), described in
paragraph [4]. The representation is also ma de with an understanding of the possible effects
of the provisions of the SLA 2006 while it rema ins in force, given the various market
conditions that may prevail in both countries during that time.

4. If a petition is filed with respect to import s of Softwood Lumber Products from Canada under
Title VII of the Tariff Act of 1930 , as amended, while the SLA 2006 is in force, Company A
recognizes and accepts that, in determining whether the allegation of material injury or threat
thereof meets the requirements of 19 U.S.C. § 1671a or § 1673a, as the case may be,
Commerce has agreed to rely on the representati on in paragraph [3] made by Company A and
other domestic interested parties as conclusi ve evidence of an insufficient allegation of
material injury or threat thereof and will dismiss the petition.

5. Company A agrees that it will not file a petition, and will oppose initiation of any
investigation, pursuant to Title VII of the Tariff Act of 1930 , as amended, or §§ 301-305 of
the Trade Act of 1974 , as amended, with respect to imports of Softwood Lumber Products
from Canada.

6. Company A agrees that it will not, in a petition filed under §§ 201-204 of the Trade Act of
1974, as amended, allege that the growth rate of imports of Softwood Lumber Products from
Canada contributes importantly to the serious injury or threat of serious injury to the U.S.
lumber industry.

7. Company A agrees that it w ill ensure that the commitments in this letter are undertaken by
and remain binding on any entities that are successors in title of Company A.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

8. The representations and commitments contained in this letter shall have no force or effect
after the SLA 2006 is terminated or expires, or if an arbitral tribunal finds that Canada has
breached an obligation under the SLA 2006, an d neither Party promptly takes action that
addresses the breach.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

Draft Union Letter

Dear USTR Schwab and Secretary Gutierrez:

The [Union] commends the spirit of cooperation in which the United States and Canada negotiated the
Softwood Lumber Agreement Between the Government of Canada and the Government of the United
States of America (the SLA 2006).

1. The [Union] endorses the representations made by U.S. producers of softwood lumber and the
trade associations in letters to yo u that the SLA 2006 removes any allege d material injury or threat of
material injury to the U.S. softwood lumber industry from imports of Softwood Lumber Products
from Canada.

2. The [Union] also makes the following commitmen ts. The [Union] will not file a trade case,
and will oppose the initiation of any investigation, pursuant to U.S. trade laws, with respect to imports
of Softwood Lumber Products from Canada. These commitments apply to petitions and
investigations under Title VII of the Tariff Act of 1930 , as amended, §§ 301-305 of the Trade Act of
1974, as amended, and §§ 201-204 of the Trade Act of 1974, as amended.

3. The [Union] agrees that it will ensure that the commitments in this letter are undertaken by
and remain binding on any entities that are successors in interest to the [Union] with respect to its
representation of workers in the U.S. softwood lumber industry.

4. The endorsements and commitments in this lette r will have no force and effect after the SLA
2006 is terminated or expires, or if an arbitral tribunal finds that Canada has breached an obligation
under the SLA 2006, and neither Party promptly takes action that addresses the breach.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

Draft Association Letter

Dear USTR Schwab and Secretary Gutierrez:

The [Association] commends the spirit of coop eration in which the United States and Canada
negotiated the Softwood Lumber Agreement Be tween the Government of Canada and the
Government of the United States of America (the SLA 2006).

1. The [Association] is a trade association and a majority of our members are U.S. producers of
softwood lumber. The softwood lumber production of the members of [Association] in 2005 was [ ],
which represented []% of total U.S. softwood lumber production in 2005.

2. The [Association] represents that the SLA 2006 removes any alleged material injury or threat
of material injury to the U.S. softwood lumber industry from imports of Softwood Lumber Products
from Canada. This representation is made taking into account all re levant facts, including possible
changes in market conditions, and the consequences th at the representations will have for the term of
the SLA 2006, including the intentions of the U. S. Department of Commerce (Commerce), described
in paragraph 3. The representation is also made with an understanding of the possible effects of the
provisions of the SLA 2006 while it remains in force, given the various market conditions that may
prevail in both countries during that time.

3. If a petition is filed with respect to import s of Softwood Lumber Products from Canada under
Title VII of the Tariff Act of 1930 , as amended, while the SLA 2006 is in force, the [Association]
recognizes and accepts that, in determining whether the allegation of material injury or threat thereof
meets the requirements of 19 U.S.C. § 1671a or § 1673a, as the case may be, Commerce has agreed to
rely on the representation in paragraph 2 made by the [Association] and other domestic interested
parties as conclusive evidence of an insufficient allega tion of material injury or threat thereof and will
dismiss the petition.

4. The [Association] agrees that it will not f ile a petition, and will oppose initiation of any
investigation, pursuant to Title VII of the Tariff Act of 1930, as amended, or §§ 301-305 of the Trade
Act of 1974, as amended, with respect to imports of Softwood Lumber Products from Canada.

5. The [Association] agrees that it will not, in a petition filed under §§ 201-204 of the Trade Act
of 1974 , as amended, allege that the growth rate of imports of Softwood Lumber Products from
Canada contributes importantly to the serious injury or threat of serious injury to the U.S. lumber
industry.

6. The representations and commitments in this letter have been approved by the [Association
board of directors. . .], and the members of the [Association] will be so notified.

7. The [Association] agrees that it will ensure th at the commitments in this letter are undertaken
by and remain binding on any successor including where: (a) the Association undergoes a name
change; or (b) the Association is absorbed by anot her association. The Associ ation also agrees that it
will not participate, cooperate, or assist in the formation of a new association that takes a position
contrary to the commitments given by the Association in this letter.

8. The representations and commitments contained in this letter will have no force or effect after
the SLA 2006 is terminated or expires, or if an ar bitral tribunal finds that Canada has breached an
obligation under the SLA 2006, and neither Party promptly takes action that addresses the breach.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

ANNEX 5B

Finding of the U.S. Department of Commerce

Re: The Softwood Lumber Agreement Between th e Government of Canada and the Government
of the United States of America (SLA 2006) – Representations on Injury by the U.S. Industry

Dear

 The SLA 2006 is intended to ensure that there is no material injury or threat thereof to an
industry in the United States from imports of Soft wood Lumber Products from Canada, and to avoid
litigation under Title VII of the Tariff Act of 1930, as amended (the Act), on this issue.

 In the SLA 2006, the United States is agreeing that it will not self-initiate an investigation
under Title VII with respect to Softwood Lumber Products from Canada and that, if a petition for such
an investigation is filed, the U.S. Department of Commerce (Commerce) will dismiss the petition.

 When a petition is filed under Title VII, Comme rce is required to examine, on the basis of
sources readily available to it, the accuracy and ad equacy of the evidence provided in the petition and
to determine whether the petition alleges the elemen ts necessary for the imposition of a duty and that
the evidence in the petition is suffici ent to justify initiation of an inv estigation. 19 U.S.C. §§ 1671a
and 1673a and Statement of Administration Action at 861. Commerce is also required to determine if
the petition has been filed by or on behalf of the industry (i.e., whether producers or workers
supporting the petition account for (1) at least 25% of total production of the domestic like product
and (2) more than 50% of such production by th at portion of the industry expressing support for or
opposition to the petition). Id.

 Domestic interested parties within the mean ing of 19 U.S.C. §§ 1671a (c) (4) (D) and 1673a
(c) (4) (D), accounting for greater than 60% of the total U.S. production of softwood lumber in 2005,
and one or more domestic interested parties that are unions, have represented to Commerce that, while
the SLA 2006 is in force, it removes any alleged in jury. Specifically, domestic interested parties have
made the following representations:

o The SLA 2006 removes any alleged material injury or threat of material injury,
within the meaning of 19 U.S.C. § 1677(7), to the U.S. softwood lumber industry
from imports of Softwood Lumber Products from Canada.

o This representation concerning injury is made taking into account all relevant facts,
including an understanding of the possible effects of the SLA 2006 over its duration
given the various market conditions that may prevail in both countries during that
time, and the consequences that the representations will have throughout its duration.

o The representations and commitments contained in this letter shall have no force or
effect after the SLA 2006 is terminated, or if an arbitral tribunal finds that Canada has
breached an obligation under the SLA 2006, and neither Party promptly takes action
that addresses the breach.

 These industry representations have been made by individual producers, by trade associations
on behalf of their members, a majority of whom are U.S. producers of softwood lumber, and by one
or more unions. The trade associations were estab lished between 1908 and 1964. Consequently, they
are a repository of substantial expertise concerning the U.S. softwood lumber industry and its markets.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

The representations by the trade associations have b een approved by resolution or vote as required by
their by-laws.

 The producers and associations also represent th e vast majority of the active members of the
Coalition for Fair Lumber Imports (Coalition). Sin ce its establishment in 1985, the Coalition is the
association through which U.S. producers have asses sed the economic condition of the U.S. industry
and have taken trade action when the industry has d eemed it necessary. The Coalition is a repository
of substantial expertise concerning the North Amer ican softwood lumber market. The Coalition was
the petitioner in both the 1985-86 action and the 2001-2002 action regardin g softwood lumber under
Title VII, and represented the U.S. industry in the 1991-92 action that was self-initiated by
Commerce. Officials of some of the individual comp anies that have made these representations also
serve as officers in the Coalition.

 The confidence of the companies, the associations, and one or more unions in their
representations is evidenced by their commitment th at, absent termination or expiration of the SLA
2006 or if an arbitral tribunal finds that Canada has breached an obligation under the SLA 2006, and
neither Canada nor the United States promptly takes action that addresses the breach, they and any
successor entities will not file a petition and will oppo se the initiation of any investigation pursuant to
Title VII of the Act with respect to imports of Softwood Lumber Products from Canada.

 Commerce has reviewed these representations and fi nds that, if a petition is filed with respect
to imports of Softwood Lumber Products from Canada under Title VII of the Act while these
representations are in effect, in determining whet her the petition meets the requirements of 19 U.S.C.
§ 1671a or § 1673a, these representations will constitu te conclusive evidence of an insufficient
allegation of material injury or threat of material injury and Commerce will dismiss the petition.

 This finding does not limit Commerce's aut hority to dismiss the petition on other grounds
pursuant to 19 U.S.C. § 1671(a) or § 1673a (c).
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

ANNEX 7A

Prevailing Monthly Price

1. As used in the SLA 2006, the Prevailing Mo nthly Price means the most recent four-week
average of the weekly framing lumber composite ("FLC") prices available 21 days before the
beginning of the month to which the Prevailing Monthly Price shall be applied. The Prevailing
Monthly Price shall be rounded to the nearest whole dollar.

2. Subject to paragraph 4, the weekly FLC price shall be the weekly Framing Lumber
Composite Price produced by Random Lengths Publications Incorporated of Eugene, Oregon
("Random Lengths").

3. The Random Lengths FLC price is a weighted average of the following fifteen structural
lumber prices:

 (a) Green Douglas Fir (Portland rate) #2&Btr 2x10 random;

 (b) Green Douglas Fir (Portland rate) Std&Btr 2x4 8-ft PET;

 (c) Green Douglas Fir (Portland rate) Std&Btr 2x4 random;

 (d) KD Coast Hem-Fir Stud 2x4 8-foot PET;

 (e) KD Eastern Spruce-Pine-Fir (del. Boston) #1&2 2x4 random;

 (f) KD Eastern Spruce-Pine-Fir (del. Boston) Stud 2x4 8-foot PET;

 (g) KD Fir & Larch Stud 2x4 8-foot PET;

 (h) KD Inland Hem-Fir (Redding rate) #2&Btr 2x10 random;

 (i) KD Inland Hem-Fir (Spokane rate) Std&Btr 2x4 random;

 (j) KD Southern Pine (Westside) #2 2x4 random;

 (k) KD Southern Pine (Westside) #2 2x10 random;

 (l) KD Southern Pine (Westside) Stud 2x4 8-foot PET;

 (m) KD Western Spruce-Pine-Fir #2&Btr 2x4 random;

 (n) KD Western Spruce-Pine-Fir #2&Btr 2x10 random; and

 (o) KD Western Spruce-Pine-Fir Stud 2x4 8-foot PET.

4. If Random Lengths changes the weights it uses in calculating the FLC price at any time after
April 27, 2006, Canada shall calculate the FLC price based on the weights Random Lengths used as of
April 27, 2006. If Random Lengths stops producing an FLC price or any of the price series listed in
paragraph 3, the Parties shall promptly select a mutually agreeable replacement series or data source.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEX 7B

Calculation of Quota Volumes for Option B

1. This Annex specifies the method to be used in determining the quota volumes for Regions
electing Option B. Quota volume shall be established on a monthly basis, and a Region may carry
forward or carry back monthly quota amounts as described in paragraphs 2 through 7.

2. The formula for calculating a Region's monthly quota volume shall be,

 RQV = EUSC x RS x PAF

 where RQV = the Region's monthly quota volume;

 EUSC = monthly Expected U.S. Consumption (as calculated in Annex 7D);

 RS = the Region's share of U.S. Consumption from Table 1 of this Annex; and,

 PAF = the price adjustment factor from Table 2 of this Annex.

3. The monthly quota volume for the B.C. Coast shall be multiplied by an additional factor equal
to the Region-specific seasonal adjustment factor for that month (Table 3) divided by the
corresponding seasonal adjustment factor used for calculating Expected U.S. Consumption (Table 1
of Annex 7D).

4. A Region may carry back (or borrow) from the next month a volume equal to 12% of its
monthly quota volume. For example, if a Regi on's calculated quota volume for June is 500 MMBF,
the Region may carry back (or borrow) 60 MMBF of the Region's July quota volume, thereby
increasing the Region's June quota volume by 60 MMBF and decreasing the Region's July quota
volume by 60 MMBF.

5. A Region may carry forward to the next month unused volume equal to 12% of its monthly
quota volume. For example, if a Region's calculated quota volume for June is 500 MMBF and the
Region ships only 440 MMBF in that month, the Region may carry forward to July the 60 MMBF of
unused quota volume, thereby increasing the Region's July quota volume by 60 MMBF.

6. A Region may increase its calculated monthl y quota volume by a maximum of 12% through
carry-forward or carry-back, or both.

7. No quota volume may be carried back or ca rried forward between any two months unless the
Region's exports are subject to a volume restraint in both months. If a Region carries back (borrows)
from the following month and its exports in that mont h are not made subject to a volume restraint, the
carry-back volume shall be subtracted from the m onthly quota volume calculated for the next month
in which the Region's exports are subject to a volum e restraint. If a Region seeks to carry forward
unused quota volume from a month and the Region's exports in the following month are not subject to
a volume restraint, the carry-forward volume shall be added to the monthly quota volume calculated
for the next month in which the Region's exports are subject to a volume restraint.

8. The share of U.S. Consumption for each Region shown in Table 1 of th is Annex is calculated
as the product of 34% and that Region's share of the volume of Canadian exports of Softwood
Lumber Products to the United States from Ap ril 1, 2001 to December 31, 2005 as reported under
Canada's Softwood Lumber National Export Monitoring System.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

9. A Region's share of U.S. Consumption set out in Table 1 reflects a deduction for exports
attributable to any companies listed in Annex 10 that are located in the Region. If the list of excluded
companies in Annex 10 is modified pursuant to Article X(2), the Regional shares in Table 1 shall be
recalculated to reflect that change.

TABLE 1

Region Percentage Share of U.S. Consumption
B.C. Coast 1.79%
B.C. Interior 16.59%
Alberta 2.63%
Saskatchewan 0.46%
Manitoba 0.31%
Ontario 3.34%
Quebec 4.86%

TABLE 2

FLC Price Price Adjustment Factor
$US 336 or over 1
$US 316-335 (32/34)
$US 315 or under (30/34)

TABLE 3

Month B.C. Coast Seasonal Adjustment Factor
January 0.7212
February 0.9767
March 0.9025
April 1.3557
May 1.1461
June 1.1771
July 0.9213
August 1.0719
September 1.0584
October 0.9477
November 0.8466
December 0.8746
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEX 7C

Procedure for Certifying Independent Remanufacturers

1. The CRA shall administer, control, and veri fy the requirements associated with certifying a
Person as an Independent Manufacturer of Remanufactured Softwood Lumber Products
("Independent Remanufacturer") for purposes of the SLA 2006.

2. In order to be certified as an Independent Remanufacturer, a company must provide an
application to the CRA that includes:

 (a) provincial certification that it does not hold Crown tenure rights and, after the
Effective Date, has not acquired standing timber directly from the Crown in any
province other than a Maritime province or other excluded province;

 (b) certification that it is not an Associated Person in respect of a company that holds
provincial Crown tenure rights or that has acquired standing timber directly from the
Crown; and

 (c) a list of Remanufactured Softwood Lumber Products that it expects to produce in the
next Year.

3. A certification shall be valid only for such time as the company satisfies the conditions for
certification specified in paragraphs 2(a) and (b ). A company's exports shall only qualify for the
treatment referred to in Article VII(7) as of the date that Canada provides notice to the United States
that it has certified the company pursuant to para graph 2. The exports of a certified Independent
Remanufacturer may be disqualified from receiving su ch treatment if Canada decertifies the company
or if an arbitration tribunal pursuant to Article XI V finds that: (a) a company is not an Independent
Remanufacturer or (b) the product that the compan y is exporting is not a Remanufactured Softwood
Lumber Product.

4. At the request of either Party, the Parties shall consult on whether to amend the SLA 2006 for
purposes of further addressing Remanufactured So ftwood Lumber Products based on an assessment
of the overall effect of the SLA 2006.

5. No later than 60 days after the end of each Quarter, for each Region that exported
Remanufactured Softwood Lumber Products to the United States during the Quarter, Canada shall
provide to the United States the weighted-average yi eld loss percentage used to determine the Export
Price for the Softwood Lumber Products incorp orated into Remanufactured Softwood Lumber
Products exported to the United States from the Region.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

ANNEX 7D

Calculation of U.S. Consumption and Market Shares

1. For purposes of this Annex:

 (a) "Canadian softwood lumber exports" refers to products within the following Statistics
Canada Standard Classification of Goods (SCG) codes: 4407.10.00, 4409.10.11,
4409.10.19, 4409.10.91 and 4409.10.99; and

 (b) "U.S. softwood lumber exports" and "U .S. softwood lumber imports from countries
other than Canada" refer to products with in the following HTSUS codes: 4407.10.00,
4409.10.10, 4409.10.20, and 4409.10.90.

2. If the Parties amend the scope of Softwood Lu mber Products or the scope is clarified as the
result of an arbitral award pursuant to Article XIV, Canada shall provide the United States with any
information required to modify the SCG code data to reflect the change or clarification and the United
States shall provide Canada with any information re quired to modify the HTSUS code data to reflect
the change or clarification.

3. U.S. Consumption shall be calculated
10 as the sum of:

 (a) Canadian softwood lumber exports to the United States; plus

 (b) U.S. softwood lumber imports from countries other than Canada; plus

 (c) U.S. shipments of softwood lumber; minus

 (d) U.S. exports of softwood lumber.

4. Canadian market share shall be calculated as Canadian softwood lumber exports to the United
States divided by U.S. Consumption.

5. Third country market share shall be cal culated as U.S. softwood lumber imports from
countries other than Canada divided by U.S. Consumption.

6. U.S. net shipments of softwood lumber shall be calculated as U.S. shipments of softwood
lumber less U.S. exports of softwood lumber.

7. U.S. producers' market share shall be calcu lated as U.S. net shipments of softwood lumber
divided by U.S. Consumption.

8. Data sources for these calculations shall be:

 (a) Statistics Canada (Canadian softwood lumber exports to the U.S.);

 (b) U.S. Census Bureau (U.S. softwood lumb er imports from countries other than Canada
and U.S. softwood lumber exports); and

10 These calculations shall be based on actual data.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

 (c) Western Wood Products Association's monthly publication "Lumber Track" (U.S.
softwood lumber shipments).

9. U.S. shipments of softwood lumber shall be calculated as the sum of the softwood lumber
shipments from the Wester n (Coast, Inland and California Redwood) region, the Southern region and
the Northern region. Northern region shipments sh all be calculated by taking the sum of Western and
Southern region shipments and multiplying by 6.25%.

10. Conversion factors used to translate metr ic units to board foot measure shall be:

 • m³: 1 MBF = 0.423776 m³

 • m²: 1 MBF = 0.010764 m²

11. Monthly Expected U.S. Consumption means th e volume of softwood lumber expected to be
consumed in the United States in a particular month.

12. Monthly Expected U.S. Consumption shall be calculated as follows:

 (a) first, U.S. Consumption shall be dete rmined for the 12-month period ending 3 months
immediately before the month for which monthly Expected U.S. Consumption is
being calculated;

 (b) second, U.S. Consumption during that 12-month period shall be divided by 12 to
produce a monthly average; and

 (c) third, the monthly average U.S. Consumption volume shall be multiplied by the
seasonal adjustment factor for the relevant month as specified in Table 1 of this
Annex.

13. The formula for calculating the monthly Expected U.S. Consumption is:

 EUSC = [USCR + 12] x SAF

where EUSC = monthly Expected U.S. Consumption

 USCR = U.S. Consumption for the latest 12-month period

 SAF = the seasonal adjustment factor for th e pertinent month based on Table 1 of this
Annex.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

TABLE 1

Month Seasonal Adjustment Factor
January 0.9288
February 0.8944
March 1.0014
April 1.0707
May 1.0679
June 1.0405
July 1.0508
August 1.0501
September 0.9953
October 1.0636
November 0.9435
December 0.8930

14. If U.S. Consumption during a Quarter differs by more than 5% from Expected U.S.
Consumption during that Quarter, as calculated under paragraph 12, the calculation of Expected U.S.
Consumption for the following Quarter for which quot as are being determined shall be adjusted as
follows. Specifically, the difference (in MBF) between U.S. Consumption and Expected U.S.
Consumption for the Quarter shall be divided by 3 and the amount derived shall be added to (if U.S.
Consumption was more than expected) or subtr acted from (if U.S. Consumption was less than
expected) the monthly Expected U.S. Consumpti on calculated under paragraph 12 for each month in
the next Quarter for which quotas are determined.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEX 8

Calculation of Regional Trigger Volumes

1. This Annex specifies the procedures to be u sed to determine Regional Trigger Volumes for
Regions that have elected Option A.

2. A Region's Trigger Volume for a particular month shall be determined by multiplying the
total monthly Expected U.S. Consumption by the Region's U.S. market share, and then multiplying
that product by 1.1. Each Region's U.S. market share is set out in Table 1 of this Annex.

3. Specifically, a Region's Trigger Volume for a particular month shall be calculated as follows:

 RTV = EUSC x RS x 1.1

where RTV = the Region's Trigger Volume

 EUSC = monthly Expected U.S. Consumption, as calculated in accordance with Annex 7D

 RS = the Region's U.S. market share from Table 1 of this Annex.

4. The Trigger Volume for the B.C. Coast for a particular month shall be multiplied by an
additional factor equal to the Region-specific seasona l adjustment factor for that month (Table 2)
divided by the corresponding seasonal adjustment factor used for calculating monthly Expected U.S.
Consumption (Table 1 of Annex 7D).

5. Each Region's U.S. market share shown in Table 1 below was derived by multiplying 34% by
the Region's share of total Canadian exports of Softwood Lumber Products to the United States during
the period January 1, 2004 to December 31, 2005, as reported under Cana da's Softwood Lumber
National Export Monitoring System.

6. Exports from companies listed in Annex 10 were not included in determining a Region's
exports to the United States for purposes of calculati ng the Region's U.S. market share reflected in
Table 1. If the list of companies subject to exclusion under Article X should change, the Regional
shares in Table 1 shall be recalculated to reflect the change.

TABLE 1

Region Percentage Share of U.S. Consumption
B.C. Coast 1.86
B.C. Interior 17.43
Alberta 2.49
Saskatchewan 0.42
Manitoba 0.29
Ontario 3.15
Quebec 4.39
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

TABLE 2

Month B.C. Coast Seasonal Adjustment Factor
January 0.7212
February 0.9767
March 0.9025
April 1.3557
May 1.1461
June 1.1771
July 0.9213
August 1.0719
September 1.0584
October 0.9477
November 0.8466
December 0.8746
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEX 10

Excluded Companies

 Companies Location Address
1 Armand Duhamel & Fils
inc.
QC Saint-Ignace-de-
Stanbridge
778, rang de l'Église Nord,
Saint-Ignace-de-Stanbridge,
Québec, Canada, J0J 1Y0
2 Bardeaux & Cèdres
St-Honoré inc.
QC Saint-Honoré-de-Shenley 935, route 269,
Saint-Honoré-de-Schenley,
Québec, Canada, G0M 1V0
3 Scierie Coaticook inc. QC Coa ticook 1129, chemin Ladd's Mills, CP
130, Coaticook, Québec,
Canada, J1A 2S9
4 Busque & Laflamme inc. QC Saint Benoit-Labre 51, route du Lac Poulin, CP
1009, Saint-Benoît-Labre,
Québec, Canada, G0M 1P0
5 Carrier & Bégin inc. QC Saint-Honoré-de-Shenley 484, route Grand Shenley,
Saint-Honoré-de-Schenley,
Québec, Canada, G0M 1V0
6 Clermond Hamel ltée QC St.-Éphrem-de-Beauce 25, rang 7 Sud,
Saint-Éphrem-de-Beauce,
Québec, Canada, G0M 1R0
7 J.D. Irving ltée. QC Pohénégamook 300, rue Union, Saint-John,
P.O. Box 5777,New Brunswick,
Canada, E2L 4M3
8 Les Produits Forestiers
D.G., ltée.
QC Québec 2600, boulevard Laurier, Tour
Québec, Canada, G1V 4W2
9 Marcel Lauzon inc. QC East Hereford 129, route 253 Sud, East
Hereford, Québec, Canada, J0B
1S0
10 Mobilier Rustique
(Beauce) inc.
QC Saint-Martin 50, 1re Rue, CP 220,
Saint-Martin, Québec, Canada,
G0M 1B0
11 Paul Vallée inc. QC St-Isidore-de-Clif ton 5, chemin du moulin de Clifton,
Saint-Isidore-de-Clifton,
Québec, Canada, J0B 2X0
12 René Bernard inc. QC Beauceville 88, avenue Lambert,
Beauceville, Québec, Canada,
G5X 3N4
13 Roland Boulanger & Cie
ltée.
QC Warwick 235, rue St-Louis, Warwick,
Québec, Canada, J0A 1M0
14 Scierie Alexandre Lemay
& Fils Inc.
QC Saint-Bernard 1010, rue Saint-Georges, CP
189, Saint-Bernard, Québec,
Canada, G0S 2G0
La Patrie, Québec, Canada,
J0B 1Y0
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

16 Scierie Tech inc. QC Lac Drolet 126, rue du Moulin, CP 99,
Lac-Drolet, Québec, Canada,
G0Y 1C0
17 Wilfrid Paquet & Fils ltée. QC Saint-Théophile 403, route 173, Saint-Théophile,
Québec, Canada, G0M 2A0
18 Sault Forest Products Ltd. ON Sault Ste. Marie 484 Gran Avenue,
Sault Ste. Marie, Ontario,
Canada, P6A 4X8
19 Boccam inc. QC Saint-Georges de Beauce 9200, 25e Avenue,
Saint-Georges de Beauce,
Québec, Canada, G6A 1L6
20 Indian River Lumber ON Scarborough 248 Sylvan Avenue,
Scarborough, Ontario, Canada,
M1E 1A6
21 Interbois inc. QC Saint-Odilon 305, du Parc CP 9,
Saint-Odilon, Québec, Canada,
G0S 3A0
22 Jacomeau inc. QC Saint Jean-de-la-Lande 245, rue Cloutier,
Québec, Canada, G0M 1E0
23 Richard Lutes Cedar inc. ON Norwood 29 Queen Street, P.O. Box 275,
Norwood, Ontario, Canada,
K0L 2V0
24 Séchoirs de Beauce inc. QC Beau ceville 201, 134E Rue, Beauceville,
Québec, Canada, G5X 3H9
25 Scierie West Brome inc. QC Lac-Brome 15, chemin West Brome,
Lac-Brome, Québec, Canada,
J0E 2P0
26 Matériaux Blanchet inc.'s
Saint-Pamphile mill
QC Saint-Pamphile 1030, rue Elgin Sud, CP 430,
Saint-Pamphile, Québec,
Canada, G0R 3X0
27 Daaquam Lumber Inc.
(Bois Daaquam inc.)
QC Québec 2600, boul. Laurier,
Bureau 2640, Québec, Québec,
Canada, G1V 4M6
28 Bois Omega ltée QC Lac Supérieur 226, Chemin David,
Lac Supérieur, Québec, Canada,
J0T 1P0
29 Fontaine inc. (J.A.
Fontaine & Fils inc.)
QC Saint-Augustin-de-
Woburn
850, rue Fontaine,
Saint-Augustin-de-Woburn,
Québec, Canada, G0Y 1R0
30 Industries Maibec inc. QC Québec 660, rue Lenoir, Québec,
Québec, Canada, G1X 3W3
31 Les Produits Forestiers
Dubé inc.
QC L'Isle-Verte 89, rue Villeray, L'Isle-Verte,
Québec, Canada, G0L 1L0
32 9157-9516 Québec inc.
(Scierie Nord-Sud inc.)
QC Saint-Prosper 764, 8e Rue, Saint-Prosper,
Québec, Canada, G0M 1Y0
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEX 12

Working Group on Regional Exemptions

1. The Parties shall establish a Working Group on Regional Exemptions (the "Working Group")
to develop substantive criteria and procedures fo r establishing if and when a Region utilizes market-
determined timber pricing and forest manageme nt systems and therefore that Softwood Lumber
Products manufactured in the Region qualify for an exemption from the Export Measures. The
Working Group shall serve as a forum for resolving differences between the Parties concerning timber
pricing and forest management systems.

2. The Parties shall seek to establish the Worki ng Group within 3 months after the Effective
Date. The Working Group shall comprise represen tatives of each Party. Canada may include
representatives of interested provinces in its delegation. The Parties may also decide to appoint to the
Working Group non-governmental representatives from Canada and the United States with an interest
in the operation of the SLA 2006. The Working Group may engage recognized experts in fields
related to the operation of the SLA 2006 to prepare fa ctual or analytic reports, and may establish such
technical sub-groups as it deems necessary for the timely completion of its work.

3. The Working Group shall seek to provide reco mmendations to the Parties within 18 months
after the Effective Date concerning the development of an addendum to the SLA 2006, including:

 (a) substantive criteria for determining if and when a Region qualifies for exemption
from the Export Measures in Articles VII through IX and Article X(2); and

 (b) procedures, which may be included in the addendum if the Parties so agree,
governing the form and content of applications that Regions may submit to the Parties
for purposes of seeking an exemption fro m the Export Measures referenced in
subparagraph (a).

4. Any dispute between the Parties regarding whether a Region has implemented or complied
with the substantive criteria and procedures described in subparagraphs 3(a) and (b) may be submitted
to arbitration under Article XIV.
WT/DS277/20, G/L/598/Add.1,
G/ADP/D45/2, G/SCM/D51/2

ANNEX 13

The North American Initiative on Lumber

1. The Parties seek through the SLA 2006 to pr omote increased cooperation between the U.S.
and Canadian softwood lumber industries and to strengthen and expand the market for Softwood
Lumber Products in both countries.

2. To this end, the Parties shall encourage inte rested Persons in Canada and the United States to
establish before the Effective Date a binational in dustry council, which sh all receive $US 50 million
pursuant to Annex 2C.

3. The objectives of the council shall include:

 (a) strengthening the North American lumb er industry by increasing the market for its
products; and

 (b) building stronger cross-border partnerships and trust at all levels of the industry.

4. The council shall consider initiatives to benef it the North American softwood lumber market,
including:

 (a) expanding the market for wood products in the non-residential construction market;

 (b) developing new methods and markets for using wood in raised wood-floor systems;

 (c) promoting the use of wood in existing residential markets;

 (d) educating consumers on the sustainabilit y of wood products to demonstrate their
desirability as an environmentally preferable building and finishing material; and

 (e) promoting the use of wood in Green Building Standards.
WT/DS277/20, G/L/598/Add.1,
 G/ADP/D45/2, G/SCM/D51/2

ANNEX 18

Template for Supplemental Letters from the Members of the U.S. Industry Which
Have Filed Letters as Described in Annex 5A

Re: Termination of the Softwood Lumber Agreemen t Between the Government of Canada and the
Government of the United States of America (SLA 2006) Pursuant to Article XVIII or
Article XX(1)

Dear USTR Schwab and Secretary Gutierrez:

 Entity A agrees that, if the United States ex ercises its right to terminate the SLA 2006
pursuant to Article XX(1), or if the SLA 2006 te rminates by operation of Article XVIII, for a period
of 12 months after such termination, it will not file a petition, and w ill oppose initiation of an
investigation, pursuant to Title VII of the Tariff Act of 1930, as amended, or §§ 301-305 of the Trade
Act of 1974, as amended, with respect to imports of Softwood Lumber Products from Canada.

 Entity A agrees that it w ill ensure that the commitments in this letter are undertaken by, and
remain binding on, any entities that are successors in title of Entity A.