TORONTO A Canadian forest product company announced Friday its intention to sue the United States for damages as a result of stiff duties Washington plans to impose on Canadian softwood lumber.

"The action is tantamount to expropriation of our markets," said Frank Dottori, president and chief executive officer of Tembec, a leading marketer of pulp, paper and wood products.

"This is a violation of the Free Trade Agreement and we are seeking compensation," he added.

Tembec said it intended to initiate proceedings under Chapter 11 of the North American Free Trade Agreement (NAFTA) and claim damages of at least $200 million.

The U.S. International Trade Commission ruled Thursday that the U.S. softwood lumber producers were threatened by unfair Canadian trading practices, paving the way for imposing countervailing and anti-dumping duties on Canadian lumber imports later this month, AFP reported.

Tembec said it expected to be charged duties reaching as high as 29 percent.