Lumber deal passes first vote in Canada

TORONTO – The U.S.-Canada softwood lumber agreement is a step closer to being ratified after it passed in a vote in Canada’s House of Commons on Tuesday.

Canadian Prime Minister Stephen Harper described the vote on the agreement as a confidence motion that could potentially bring down his government. But the opposition party Bloc Quebecois said earlier this month they would support the deal.

Together, Harper’s Conservatives and the Bloc had enough votes to defeat the Liberals and the NDP, who vowed they would vote against implementing the deal.

The House of Commons voted 172-116 in favor of the motion – the first step in the formal approval process.

The agreement, which would see the Americans pay back about $4 billion of $5 billion in punitive duties paid by Canadian lumber producers, has been endorsed by the premiers of Quebec, British Columbia and Ontario, the three big softwood-producing provinces.

The seven-year, renewable deal was first announced in April after years of on-and-off bargaining and litigation. A final version was unveiled July 1.

Canada supplies about one-third of the U.S. market for softwood, easily sawed pine, spruce and other wood used in home-building.