The first refunds 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 paid duties to the U.S. over the past four years. That represents about 20 per cent of the estimated $5 billion that will be returned.
Word of the first refunds comes less than three weeks after the agreement to settle the long-running softwood lumber dispute 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 said in 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 the softwood lumber deal let 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 Minister Harper said a "clear majority" in the industry supported the deal, adding the settlement was in the best interests of the lumber industry and Canada-U.S. relations.
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