Mexico, Canada Urge Strengthening Of Trade Pact

The dispute over softwood lumber has become an irritant in trade and political relations between Canada and the U.S. The Canadian government canceled talks with the U.S. in August aimed at resolving the spat after the U.S. said it wouldn't honor the Nafta panel's findings. ``We want Nafta to work,'' Martin said at a joint news conference. ``To work, we must be faithful to the letter and the spirit of the agreement.'' The U.S. began imposing tariffs in 2002 in retaliation for the pricing of Canadian timber, a practice the U.S. government contends subsidizes Canadian lumber exports and harms U.S. producers of forest products. Canada has tried to pursue resolution of the dispute through the rules of Nafta. The U.S., while defending itself under the trade agreement, has emphasized the need for a negotiated settlement. ``Mexico regrets any unilateral decision that fails to abide by the decisions of the arbitration panels where trade differences are discussed and aired,'' Fox said in a speech today to the Vancouver Board of Trade, the city's chamber of commerce. To contact the reporter on this story: Christopher Donville in Vancouver cjdonville@bloomberg.net. Last Updated: September 30, 2005 20:16 EDT http://www.bloomberg.com/apps/news?pid=10000082&sid=auCsNNhanw2k&refer=canada#

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