Merrill & Ring Forestry LP formally launched a US$25-million claim Wednesday against the Canadian government under the North American Free Trade Agreement.
The privately held U.S. company, based in Port Angeles, claims that Canadian rules, which give British Columbia mills first chance at buying timber cut from privately owned land in the province, prevent it from getting full market prices.
In September, Merrill & Ring gave notice that it planned to bring the case under Chapter 11 of the North American Free Trade Agreement. On Wednesday, it filed its formal notice of arbitration and statement of claim in Ottawa.
There have been no formal consultations with the government, despite provisions under NAFTA, the company said Wednesday.
Merrill & Ring alleges that rules governing the export of raw logs from private B.C. lands are discriminatory and violate NAFTA, which requires equal treatment of foreign and domestic investors.
"We can export only those logs that are not bought locally at lower prices than we could obtain elsewhere. This is unfair and discriminatory treatment of private land owners; it kills jobs for loggers and other forestry workers and is a violation of the NAFTA," Merrill & Ring vice-president Norm Schaaf said in a statement.
He added that the company knows the B.C. government has considered making changes to the regime since Merrill & Ring Forestry filed its notice of intent in the fall.
"While we support all efforts to make the system fair for participants in the log export business, we must continue with our NAFTA claim until we see a concrete change in policy. In the meantime, we have been left with little choice but to claim compensation for the financial losses we have suffered," Schaaf said.The Canadian Press
