VANCOUVER, British Columbia (Reuters) - A U.S. forestry firm accused Canada on Wednesday of violating the North American Free Trade Agreement by restricting log exports from private land on the Pacific Coast.
Merrill & Ring Forestry LP, which owns land on the British Columbia coast, is upset that it has to offer its logs for sale to sawmills in the province before they can sold on the export market.
"We can export only those logs that are not bought locally at lower prices than we could obtain elsewhere. This is unfair and discriminatory treatment of private land owners," the Port Angeles, Washington-based company said.
The company that also owns land in Washington state and New Zealand is seeking $25 million in damages under NAFTA's Chapter 11 investor rights provisions.
British Columbia is considering easing its restrictions on whole log exports, which have long been an emotional political issue in the province.
A provincial report this month said if export rules are eased the province should also impose fees on the logs that are linked to the export tax imposed on Canadian lumber as part of the U.S.-Canada softwood lumber trade agreement.
($1=$1.16 Canadian)
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