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P&T Loses Round 1 In Quota Fight

Seeking damages of more than $125 million over lumber quotas, Pope & Talbot Inc., Portland, Or., had two of its four claims against Canada dismissed by a North American Free Trade Agreement arbitration panel.

The ruling stated that lost exports following the 1996 Canada/U.S. Softwood Lumber Agreement had not caused "substantial deprivation" to P&T's British Columbia assets.

The panel did request more information before deciding if Canada's allotment of export quotas discriminated against the U.S. company. "I think it's an indication we're on the right track," said ceo Michael Flannery.

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