Canadian lumber companies get first softwood refunds

The firstrefunds of softwood duties have been sent out to Canadian lumber companies, Ottawa announced Monday.

Refunds totalling $950 million have been given to Canadian companies that had paidduties to the U.S. over the past four years.That represents about20 per centof the estimated $5 billion that will be returned.

Word of the first refunds comesless than three weeks aftertheagreement to settle the long-running softwood lumberdispute was enacted. The money is being advanced via an accelerated refund program run through Export Development Canada.

The refunds come at an auspicious time, as many of Canada's lumber companies are struggling with weak demand, low prices and a high Canadian dollar that makes their products more expensive in the U.S. market.

"We are pleased to have received these monies in a timely manner," Tembec CEO James Lopez saidin a statement.

Tembec said its $242 million US refund amounts to"substantially all" of the money it expects to recover.

Earlier this month, Tembec temporarily closed three sawmills in Quebec, citing the "very challenging time for lumber producers."

Many in the industry were not happy that thesoftwood lumber deallet the U.S.keep about $1 billion of the money it had collected over the years. The opposition parties criticized what they called a "sellout" to the Americans.

But Prime MinisterHarpersaid a "clear majority"in the industry supported the deal,adding thesettlement was in the best interestsof the lumber industry and Canada-U.S. relations.