<P> The Canada--United States softwood lumber dispute is one of the most significant and enduring trade disputes in modern history . The dispute has had its biggest effect on British Columbia, the major Canadian exporter of softwood lumber to the United States . </P> <P> The heart of the dispute is the claim that the Canadian lumber industry is unfairly subsidized by the federal and provincial governments . Specifically, most timber in Canada is owned by provincial governments . The price charged to harvest the timber (the "stumpage fee") is set administratively rather than through a competitive auction, as is often the practice in the United States . The United States claims that the provision of government timber at below market prices constitutes an unfair subsidy . Under U.S. trade remedy laws, foreign goods benefiting from subsidies can be subject to a countervailing duty tariff to offset the subsidy and bring the price of the product back up to market rates . </P> <P> Since the September 11th attacks, there has been debate on whether there should be further North American integration . Some have proposed the adoption of the Amero under the North American Currency Union as the official currency of North America . While these discussions are more prevalent in Canada, studies have shown that United States citizens would not object to economic integration . Former U.S. Ambassador Paul Cellucci stated, however, "Security trumps trade" in the United States, and so as long as Canada is a possible point of entry for terrorists, such integration seems unfeasible . </P> <P> The strength of the Canada--U.S. relationship is demonstrated by impressive bilateral trade of approximately $1.9 billion a day, along the world's longest undefended border . Energy trade is the largest component of this cross-border commerce . Canada has the third - largest oil reserves (after Saudi Arabia and Venezuela), thanks to its oil - sands resources . The United States has historically been Canada's only foreign market for natural gas, oil, and hydropower . In 2010, almost 100% of Canada's exports in these commodity classes were destined for the United States . Canada is the largest foreign supplier of crude oil (25% of oil imports) and natural gas to the United States . In short, this energy relationship has enhanced U.S. energy security and provided Canada with steady demand for its energy exports . </P>

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