Toronto — Dealing with the United States in trade disputes has been "a very painful experience" for Canada in recent years, federal Finance Minister Ralph Goodale said Monday.

Goodale, speaking at the annual conference of the Association of Municipalities of Ontario, said Canada has been treated unfairly by the U.S. in disputes over such goods as wheat, beef and softwood lumber.

The minister said he was "very disturbed" by the American response to a recent NAFTA panel ruling on the softwood lumber dispute that he called "absolutely clear cut and without equivocation in Canada's favour."

Earlier this month, the panel dismissed Washington's claims that Canadian softwood exports are subsidized and damage the U.S. lumber industry.

International Trade Minister Jim Peterson immediately called on Washington to concede defeat and return about $5 billion in countervailing and anti-dumping duties collected from Canadian companies.

The U.S. refused, saying the ruling is not the end of the matter because it does not deal with a 2004 decision from the U.S.-based International Trade Commission. That decision supported the American case, although it's believed it and other earlier decisions have all been trumped by the NAFTA conclusion.

While he did not set a timeline, Goodale said Peterson is considering Canada's options - which could include litigation or trade sanctions.

"He will no doubt be coming to cabinet very shortly to outline what the options might be and seek support for that," Goodale said.

"We're still in the very early stages of it. We're not in a position yet to define the exact strategy, but we want to send a very clear signal that Canada takes this very, very seriously."

There is also some talk that Ottawa and the provinces may look to postponing the next round of softwood talks originally planned for the week of Aug. 22 in the hopes of sending a message south of the border.

A spokeswoman for Peterson would not confirm this, but suggested that Canada is prepared to defend its interests.

"Canada wants to come to a fair and durable resolution to this," Jacquie LaRocque said. "Ministers have been clear: We must and we will take every measure necessary to ensure Canada's rights are respected."

The U.S. lumber industry has long claimed that Canadian producers are unfairly subsidized through low fees paid to governments for timber.

Canadian softwood producers sell about $10 billion worth of spruce, pine and fir lumber a year to the U.S. home-construction and renovation sectors.