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flag Canada defends $1.2B lumber aid against U.S. trade claims, citing similar U.S. support and ongoing disputes.

flag Canada’s lumber industry defends a $1.2 billion aid package, including $500 million for export diversification and $700 million in loan guarantees, against U.S. claims it constitutes an unfair subsidy. flag The U.S. argues the support violates trade rules amid ongoing disputes over anti-dumping duties reaching 35% and a Section 232 national security probe. flag Canadian officials and industry leaders counter that similar government support exists in the U.S., including tax incentives and state aid, and say the aid is a necessary response to what they call unjustified trade actions. flag While Canada has withdrawn two legal challenges to certain duties, officials say this is a strategic move, not a retreat, and that other legal and diplomatic efforts continue. flag Industry leaders remain skeptical of a quick resolution but hope for a broader trade agreement, highlighting long-standing tensions over softwood lumber trade.

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