Canada Ready to Increase Sanctions Against U.S.

[tuvor]

GATINEAU, Quebec (Reuters) - Canada is prepared to increase the sanctions it is already imposing on a range of U.S. goods unless Washington scraps a controversial anti-dumping law, Prime Minister Paul Martin said on Monday.

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The new Canadian surtax will bring in modest revenue of about C$14 million a year from the country's primary trading partner. But that amount could soar if Washington starts paying out large sums <from the $3 billion+ proceeds of Canadian softwood tarrifs> to U.S. lumber producers.

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Martin denied suggestions that Ottawa would bow to pressure from the U.S. side to end the dispute.

"I'm not going to give up. We are not going to cave in, I can tell you that," he said.

http://story.news.yahoo.com/news?tmpl=story&cid=840&e=8&u=/nm/canada_trade_usa_col