US blinks in softwood standoff 11/24/2005 WASHINGTON -- The U.S. Commerce Department announced it would comply with a NAFTA panel's order to cut a 16 percent duty on Canadian softwood lumber imports -- for now. Even though the Bush Administration still strongly disagrees with the repeated NAFTA rulings in Canada's favor, it will comply, Commerce Secretary Carlos Gutierrez said yesterday. "We have serious concerns about the panel's decision. However, consistent with our NAFTA obligations, we have complied with the panel's instructions," Gutierrez said in a press release.
The ruling effectively means that the Americans would reduce duties from about 16 percent to less than one per cent. Separate antidumping tariffs averaging about 4 percent will not be affected.
While protectionists oppose the move to lift softwood tariffs, US consumer groups applauded the move However, the government says it's asking for clarification of the ruling -- meaning the duties on Canadian imports can remain in place for another 45 days. Officials also added they have the right to appeal the ruling. The two counties have been at odds over the softwood issue for years. Canada says the duties are in violation of the free trade agreement. The U.S. has argued that Canadian softwood is subsidized because it's cut on Crown timberland, while U.S. softwood is sawed privately, placing it at a competitive disadvantage.
Canada accounts for about one-third of the U.S. supply of softwood, used mainly in homebuilding.
As expected, U.S. protectionist industry groups decried the move. However, consumer commended the Department of Commerce for "finally doing the honorable and right thing in recalculating lumber duties as directed."
American Consumers for Affordable Homes (ACAH), representing more than 95 percent of lumber consumption in the U.S., said such duties only punish consumers. "These duties on Canadian softwood lumber increase the cost of a new home by at least $1,000, pricing more than 300,000 families out of mortgage eligibility and home ownership," said Susan Petniunas, spokesperson for ACAH.
Industries that depend on lumber as an input and that oppose import restrictions include manufacturers of value-added wood products, lumber dealers, manufactured and on-site home builders, remodeling contractors, mattress and box springs manufacturers, and individuals, says ACAH.
One big happy global village ping.
As a citizen in Kansas City, Missouri I'm fighting against this proposed pilot program.
Considering the historic nature of this arrangement, however, one would expect that there would be some documentation, including documented permission from the federal government, which traces the genesis of locating a Mexican customs facility within the sovereign border of the United States.
Surprisingly, Kansas City SmartPort president Chris Guiterrez and Councilwoman Bonnie Sue Cooper claim that there are no documents. And shockingly, the Kansas City, Missouri City Council obligated the funds for this pilot project based on nothing more substantial than it being a good idea.
Moreover, there are major concerns that have not been adressed.
We may be able to glean some information regarding the various issues associated with cross-border inspection services from the National Law Center for Inter-American Free Trade. The Center’s findings are contained in a study, “Expanding Trade through Safe and Secure Borders,” conducted by The University of Arizona’s Office of Economic Development.
The Center suggests that, “If cross-border inspection services are envisioned as an eventual element of the CyberPort concept, it would be advisable to conduct an in-depth study of possible civil liability and insurance issues, which could very likely become a concern for certain U.S. agencies.” Moreover, the Center also noted that the concept of an inland port would require “enhanced security.”
The Center’s April 2004 newsletter, “The Inter-American Trade Report” Carlos Guzman-Leuffer explains that, “One of the most important obstacles that would face any proposal of the Cyberport project is the sovereignty issue in the NAFTA countries...”
Our City Council and economic development officials seem unconcerned about the state of Missouri's sovereignty.
Narcotics. Coyotes. Terrorists.
(I'm sure they'll manage to find a way, even though I can't think of one.)
No cheers, unfortunately.
ping
Here is the more of the plan at http://www.nascocorridor.com/. North American Union here we come. Is it good, is it bad, is it inevitable? I don't know.
Since Wal Mart is now undercutting our American ports, they may as well cut out Mexico too, and just fly over their Walmarts and do cargo drops with parachutes.
They're here, we might as well start dealing with them. </barf
I am sure that the automobile insurance companies will be happy to watch stolen cars shipped to mexico right under their noses from Kansas City.