Canada will obey softwood ruling: Harper

Canada is not pleased with its recent loss on softwood lumber duties, but the government will follow the decision of an international trade tribunal.

"Canada will, of course, follow the rules and we will obey the decision," Prime Minister Stephen Harper told the House of Commons during question period Tuesday.

The tribunal turned down Canada's bid to pay a reduced fine for breaching the softwood lumber trade pact with the United States.

Canada had offered to pay $46.7 million US in compensation for shipping too much wood south of the border. Instead, it will have to pay $68 million US, as originally ordered last February by the London Court of International Arbitration.

"We are not pleased with the decision," International Trade Minister Stockwell Day said, "but it is essential that we abide by it."

Canada will have to impose export charges on softwood lumber destined for the U.S. until the full amount of the fine has been collected.

Tired of waiting for Canada to comply, the U.S. imposed its own duties last April on lumber imported from Ontario, Quebec, Manitoba and Saskatchewan.