Canada will pay the U.S. government $46.7 million in order to comply with a February ruling on softwood lumber duties made by a London court, Ottawa said late Tuesday.

Minister of International Trade Stockwell Day said Ottawa is making the money "available" to Washington to fulfill the country's obligations after the London Court of International Arbitration ruled in February that Canada had to impose a 10 per cent duty on its softwood lumber exports.

"Maintaining the Softwood Lumber Agreement is a priority for the Canadian government and industry,” said Day. “We recognize our commitments under this agreement, and we have honoured them.”

In February, the London court said Canada had breeched its 2006 softwood treaty with the United States and needed to impose a duty on lumber sales to U.S. buyers that exceeded established quota levels.

At the time, the extra duties — to be imposed on wood sales from Quebec, Ontario, Manitoba and Saskatchewan — were estimated to be in the range of $68 million. There was no explanation presented as to why that amount has been lowered.

Lumber groups in Quebec and Ontario both said they were pleased with the government's decision to comply with the arbitrator's ruling.

"[The Ontario Forest Industry Association and Québec Forest Industry Council] stand behind the Canadian government and believe that Minister Day is acting in accordance with the rules of the International Tribunal by paying a lump sum and … [waiting] for clarification prior to undertaking further steps," said Jamie Lim, president of the OFIA and Guy Chevrette, the QFIC's president and chief executive officer, in a joint press release.

"Both associations hope that the United States will see that Canada is working in good faith on this file" they said.

Canada and the United States have been locked in a long-standing dispute over whether Ottawa and the provinces subsidize softwood production through low stumpage fees and various other assistance programs.