Yet another NAFTA lumber ruling in favour of Canada

I guess Bush needs our $5 billion to help pay the debt of Iraq. Won't hold my breath to see those levies come back.

Canada roars, U.S. yawns over softwood ruling; agree deal needed soon

at 17:14 on August 13, 2005, EST.
MARTIN O’HANLON

OTTAWA (CP) - The United States has responded to Canada's mighty roars in the softwood lumber dispute with a deafening yawn. But as Ottawa makes rumblings about trade retaliation and the prime minister prepares to weigh in, the Americans are holding out the hope of a negotiated settlement.

Canada won what it says is a major victory this past week when a NAFTA 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 countervail 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.

Peterson and several cabinet colleagues expressed outrage. They issued a statement calling on the U.S. to "do the right thing" by accepting the NAFTA ruling. They said the American position raises questions about Washington's commitment to the North American Free Trade Agreement.

Peterson followed that up with a call to his American counterpart, U.S. Trade Representative Rob Portman.

A spokeswoman said the minister told Portman that Canadians are outraged with the U.S. blatant disregard for NAFTA rules and that the $5 billion in duties must be returned.

Peterson also warned that Ottawa is prepared to "take all measures necessary," including the possibility of trade retaliation.

Portman reportedly responded that the U.S. is committed to NAFTA but that he has to explore any avenue of appeal that remains open.

Both did agree that the dispute must end soon and that negotiations will continue within two weeks.

In the meantime, Canada is girding for battle.

"We have already begun the process of getting permission from the (World Trade Organization) to implement punitive measures against the Americans," Peterson said.

"I gave the order to complete the litigation in order to obtain the right to impose these measures.

"The American like lawsuits - they like them a lot more than Canadians - but we are going to continue using whatever means necessary to win the cases."

Prime Minister Paul Martin, who has been under pressure from several premiers to get tougher with the U.S., is also to raise the matter with President George W. Bush.

The U.S. issued a statement late Friday aimed at easing Canadian concerns, while offering no real movement.

"Ambassador Portman spoke with minister Peterson yesterday. It was a cordial and candid conversation," the statement said.

"Ambassador Portman conveyed the respect the United States has for the NAFTA process ... Ambassador Portman reiterated that it is in the interest of the United States and Canada to reach a permanent negotiated solution."


The U.S. 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

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The US said they won't pay.

Hey where's our submarine?

You mean that piece of garbage that we bought from England?

This whole softwood lumber issue is becoming such a joke, albeit an extremely expensive one. I really think that they might as well scrap NAFTA. It never works for Canada when there's a dispute.

Peterson: PM expected to call Bush soon to discuss lumber trade dispute

at 20:25 on August 22, 2005, EST.
STEVE MERTL

VANCOUVER (CP) - Prime Minister Paul Martin will be talking to President George W. Bush soon on the U.S. decision to ignore a key NAFTA ruling on softwood lumber, International Trade Minister Jim Peterson said Monday.

"I don't know whether they've talked yet or not," Peterson said during a day-long stop in Vancouver. "As of yesterday they hadn't but I understand it may take place sooner rather than later."

The Prime Minister's Office said last week Martin would be calling Bush after consulting with provincial premiers and key cabinet ministers.

"There will be a call and the timing is still to be determined," Orli Namian, a spokeswoman for the prime minister, said from Ottawa.

The issue is on the agenda at the Liberals' caucus and cabinet meetings in Regina this week.

Peterson met with B.C. forest industry executives for about an hour on Monday afternoon, said industry spokesman John Allan.

"He was interested in hearing what ideas we might have," said Allan, who heads both the exported-oriented B.C. Lumber Trade Council and the Council of Forest Industries.

The kind of feedback Martin gets from the provinces and industry is expected to determine the timing and content of his conversation with Bush. He might ask for a for a good-faith gesture from the Americans as a pre-condition to renewing bilateral talks.

B.C. Forests Minister Rich Coleman suggested last week that scraping three-year-old lumber duties and returning the billions collected to date would renew confidence in a long-term, negotiated settlement.

Allan said there are technical things U.S. trade officials could do that would send positive signals, including entrenching reduced duty rates at upcoming reviews and returning an estimated $100 million in duties collected during a five-week period last fall when legally they should not have been levied.

Negotiations to settle the longstanding softwood lumber trade battle were supposed to resume in Ottawa on Monday.

But Peterson postponed talks indefinitely last week after the United States said it would not comply with a decision by an extraordinary challenge committee upholding previous NAFTA rulings that found Canadian lumber exports posed no threat of injury to American producers.

Canada contends that ruling removed the last justification for punishing U.S. tariffs on Canadian lumber. The U.S. government argued the panel's unanimous ruling was moot because of a U.S. decision last fall to comply with an earlier World Trade Organization ruling on threat of injury - a position the Canadians consider a legal fig leaf for U.S. non-compliance.

Peterson, echoed by Canadian trade experts, warned the U.S. stance risks undermining the NAFTA entirely if the Americans are seen to ignore binding rulings that don't suit them.

"In our view, this has gone beyond lumber now," said Allan.

"The feedback from the United States is that they were very disappointed we called off the talks," Peterson said between meetings with B.C. business leaders.

Canada still wants a "long-term, durable solution" to the decades-old trade battle, said Peterson, but "right now our priority is to make sure the terms of the NAFTA are respected."

Allan said Canada needs to re-energize its allies in American lumber-consuming industries, and their friends in Congress.

Allan said he also hopes Deputy Prime Minister Anne McLellan raises the issue when she hosts U.S. Vice-President Dick Cheney's Alberta visit next month.

U.S. Customs has collected $5 billion in duties since May 2002, when American trade officials concluded Canadian softwood imports were subsidized.

Canada has claimed victory in numerous NAFTA and WTO appeals but the United States has shown no inclination to lift the duties and return the money.

U.S. Ambassador to Canada David Wilkins last week urged Canadian politicians to tone down the rhetoric and get back to the table. Canadian officials say there's no point until the Americans demonstrate they will abide by their existing treaty obligations.

Peterson said Ottawa is consulting with the lumber-producing provinces and the forest industry to find a response that is "measured and appropriate in the circumstances and does recognize the great importance of the NAFTA to us, not only in the softwood sector but to all industrial sectors here in Canada."

Canada has already set the wheels in motion to retaliate, seeking WTO authorization for billions of dollars in punitive tariffs against U.S. imports and going before the U.S. Court of International Trade in New York to force the refund of duties.

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Australia too has a free trade agreement with the US - although it wasn't a popular decision (I could see special interests in the US having their way). So I'm watching this with interest.

I didn't realize that you folks had a FTA with the U.S.

Don't hold your breath if you get a disagreement and things don't go their way.

Rulings have clearly gone in favour of Canada and the U.S. isn't living up to them and their obligations to follow through.

Our biggest fear is our pharmaceutical benefits scheme (PBS). The Americans hammered at it, it means we get subsidised medicines and drugs.
We fully expect that our government has sold us out and we will see our medicines and drugs skyrocket in price soon.

Anyway good luck. Your Ambassador to the US seems to be on the ball from what I saw when I was last in Canada. I hope PM Martin and the govt are up to it too.

Bush is a trade bully, he is owned by sectional interests in the US so there really is no such thing as "free trade" with the US under the Bush regime.

Ironically, in our case, the Americans want to buy drugs in Canada because it's so much cheaper. Naturally, the industry is baulking at this.


So it would appear. In the case of the softwood lumber situation, feet have been dragged for so many years now. Rulings are clearly in favour of Canada, but now there is talk of "negotiations". Huh?

As far as our beef industry, I don't know if that will ever get back to "normal". The mad cow case in Canada was a good excuse for American interests to close the border and point the finger at us. It fell right into their hands.

Wars have been fought over less. Just as well that as far as I can remember a democracy hasn't attacked a democracy for umpteen years.

Did you folks expect fair play with the Texas Shrub in the White House? How droll.

I wonder how the drama would play out if the roles were reversed, hmmm?

Canada's ambassador to United States warns trade rules could be unravelling

at 13:41 on August 29, 2005, EST.


Canadian ambassador to the U.S. Frank McKenna, left, and U.S. ambassador to Canada David Wilkins.
(CP PHOTO/Paul Chiasson)
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ST. JOHN'S, N.L. (CP) - Frank McKenna, Canada's ambassador to the United States, says the rules that govern the largest commercial relationship in the world could be unravelling as a result of a long-standing dispute over softwood lumber.

McKenna, speaking to a meeting of eastern premiers and New England governors, says the North American Free Trade Agreement has served both Canada and the U.S. well, but there is a sense that the rules aren't being respected.

The former New Brunswick premier says he and other architects of the original free trade agreement with the U.S. would have been very reluctant to sign on if they thought those rules would be ignored.

The dispute overshadowed the annual gathering of eastern premiers and New England governors in St. John's, Nfld.

Quebec Premier Jean Charest says the dispute is contaminating the relationship between the two countries.

Washington announced earlier this month it will ignore a NAFTA ruling on softwood lumber and continue to apply punishing U.S. tariffs to Canadian lumber shipped over the border.

But U.S. Ambassador David Wilkins says the United States is committed to free trade and maintaining a close relationship with Canada.

Wilkins says the dispute has raged on for two decades and both parties need to tone down the rhetoric and try to negotiate a settlement.

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What's that diplomatic code for? "Canada should lie down and take it"?

I know we (Australia) are going to get screwed over "free" trade, it's just a matter of time.

Yup, it sure sounds like it!

Oh well, to borrow a provincial motto which might not be to the taste of Canadians outside of Quebec: Je me souviens

...only if they have a Macdonalds or something...


"Two all beef patties, cheese, lettuce, pickle and hold the invasion"....

Aren't we ALL GLAD we aren't MEXICO!!!



Those 'Yanquis' don't even need an excuse like 'Weapons of Mass Destruction' or 'Exporting terror' or 'Axis of Evil' to stick it to those poor bastids....

No Mr S, they're McInsurgents

I'd really like to hear some serious input from some American A2Kers here about this U.S. - Canada softwood lumber issue. Are you aware of this at all?

Our Prime Minister Martin recently had a chat with your President Bush about it and it seems to be going nowhere fast.

If you've got the time and interest, perhaps you would like to read this article here.