The Federal government may open its wallet to bail out the softwood lumber industry.
The National Post quotes Natural Resources Minister Herb Dhaliwal as saying federal offices are considering a multi-billion dollar plan to pay the full cost of US penalty duties on Canadian softwood.
Washington is expected to impose duties totalling 29 percent in mid-May, claiming Canadian producers receive unfair government subsidies.
Canada is taking its case to the World Trade Organization and the NAFTA dispute panel, and if it wins, the industry bailout money could be refunded, letting taxpayers off the hook.
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