Treaty Compliance: Lessons from the Softwood Lumber Case

The Canada-U.S. dispute over softwood lumber imports provides an important case in understanding issues of international bargaining and treaty compliance. Recent events in the dispute suggest that one of the leading theoretical accounts of treaty compliance does not offer an adequate explanation of state behavior. Policy makers should recognize the importance of cross-border ownership and industry interdependence for the implementation of, and compliance with, international trade agreements. The softwood lumber dispute adds credence to the perspective, often advocated by realists, that treaty compliance will only occur when it is in a nation’s material interests to do so.