US blasts WTO ruling in Canada lumber dispute

WASHINGTON, Aug 25 (AFP): The United States (US) slammed a World Trade Organisation (WTO) ruling Monday that favored Canada in a longstanding battle over lumber imports, holding the case up as further justification for Washington's campaign to drastically reform the global trade body.

The WTO's dispute settlement body - long a target of attacks by US Trade Representative (USTR) Robert Lighthizer - agreed with Canada's complaints that Washington had violated trade rules when imposing duties on lumber widely used in construction.

Lighthizer called the findings "erroneous" and said they "prevent the United States from taking legitimate action in response to Canada's pervasive subsidies for its softwood lumber industry."

"This flawed report confirms what the United States has been saying for years: the WTO dispute settlement system is being used to shield non-market practices and harm US interests," he said in a statement.

Under President Donald Trump, Lighthizer has led a campaign to reform the WTO, claiming it is unfair to the United States, and as a result the US has paralyzed the Dispute Settlement Body which arbitrates trade grievances among members.