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Softwood deal survives vote in House of Commons (win for important Canada-U.S. trade pact)
CTV.ca ^ | Tue. Sep. 19 2006 | Staff

Posted on 09/19/2006 7:21:36 PM PDT by GMMAC

Softwood deal survives vote in House of Commons

Updated Tue. Sep. 19 2006 6:00 PM ET
CTV.ca News Staff


The controversial softwood lumber deal easily passed its first parliamentary vote on Tuesday, therefore ensuring the survival of the minority Conservative government.

The House of Commons voted 172-116 in favour of a ways and means motion -- the first step in the formal approval process.

If it had failed, the country would have faced an election, as Conservative Prime Minister Stephen Harper had made it a matter of confidence, but its passage had been expected.

But while the NDP and most Liberals voted against the deal, the separatist Bloc Quebecois threw it support behind the government, allowing the deal smooth passage.

Passage of the motion allows formal legislation to be introduced implementing the deal, but its passage is now seen as a foregone conclusion.

Trade Minister David Emerson had earlier tabled notice of a ways and means motion, which said the legislation will take effect Oct. 1.

Emerson defended the agreement against critics later Tuesday, saying the deal would bring stability to the industry.

"This vote today was a very important signal that Parliament accepts that this agreement is the way to go forward," Emerson told CTV Newsnet's Mike Duffy Live.

The longstanding softwood dispute had soured relations between the world's two largest trading partners for decades, with the U.S. industry arguing that Canada unfairly subsidized its lumber producers and put them at a disadvantage.

The first news of the deal came with a framework agreement announced April 27.

That was followed on July 1 with a 70-page document outlining out a complex, seven-year arrangement that replaces duties the United States slapped on Canadian softwood in 2002 with a system of taxes and quotas that Canada will impose on its exports.

The U.S. will also return 80 per cent of US$5.3 billion in duties collected from Canadian lumber companies since 2002.

Initially, provinces and the industry were hesitant to back the deal and then chewed it over during the summer, until the government gave them a deadline to state their intentions.

By the end of August, the government indicated that it had enough homegrown support and signed the pact on Sept. 12.

The government says the agreement will bring stability to an industry rocked by years of uncertainty but the Liberals and the NDP have accused the government of selling out the forestry industry.

"What we are seeing in the softwood lumber dispute is unprecedented bullying to try to force the industry to submit,'' New Democrat MP Peter Julian told The Canadian Press on Tuesday.

He said the deal is flawed because it hands an unwarranted victory to the United States.

Canada supplies about a third of the softwood lumber used in the U.S. market, mainly in housing construction and renovation. In 2005, Canada exported about $7.4 billion in softwood to the United States.

With files from The Canadian Press


TOPICS: Canada; Foreign Affairs; Government; News/Current Events
KEYWORDS: canadaustrade; conservatives; harper; softwoodlumber
Bottom line(s):

1. It's likely the best possible deal for both nations.

2. Canada's anti-U.S. left is whining because they couldn't cut a similar deal in over a decade of trying.

3. As predicted by many Canadian FReepers, the separatist BQ (Bloc Quebecois) voted with the Conservative government both because the deal is good for Quebec & somehow realize forcing an election would amount to political suicide for them.

1 posted on 09/19/2006 7:21:38 PM PDT by GMMAC
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To: fanfan; Pikamax; Former Proud Canadian; Great Dane; Alberta's Child; headsonpikes; Ryle; ...

PING!
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2 posted on 09/19/2006 7:22:41 PM PDT by GMMAC (Discover Canada governed by Conservatives: www.CanadianAlly.com)
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To: GMMAC; Alberta's Child; albertabound; AntiKev; backhoe; Byron_the_Aussie; Cannoneer No. 4; ...

-


3 posted on 09/19/2006 7:48:15 PM PDT by Clive
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To: GMMAC

Interesting ... the libs helped us extend the A'stan tour and the BQ helped us pass the Softwood Lumber deal.


4 posted on 09/19/2006 8:03:54 PM PDT by NorthOf45
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To: NorthOf45
The BQ's MPs discovered back in their home ridings over the summer the deal was popular in Quebec and if they did not back it, it would mean the end of their influence in Parliament. Those seats would in all likelihood go to the Tories.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

5 posted on 09/19/2006 8:07:19 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: NorthOf45

"Interesting ... the libs helped us extend the A'stan tour and the BQ helped us pass the Softwood Lumber deal."


Triangulation, Canadian-style. NDP always lose. :)


6 posted on 09/20/2006 6:48:54 AM PDT by Grig
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To: Grig

Ain't it sweet? : )


7 posted on 09/20/2006 7:19:46 AM PDT by NorthOf45
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To: GMMAC

It appears to be a good deal, but why is industry against it?


8 posted on 09/20/2006 1:17:09 PM PDT by Sam Gamgee (May God have mercy upon my enemies, because I won't. - Patton)
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To: Sam Gamgee
A lot of whatever limited industry opposition there is depends upon who you talk to & where they're geographically located.

From what I understand, most of it has to do with the future impact of quotas coupled with worst case scenarios.

To me, most of it seems to ignore fundamental laws of supply & demand:
Call me simplistic but, since we have far more supply & the largest future demand exists Stateside, the impact of any tariffs & whatever quotas is going to be a matter for American consumers to take up with their government.

Ultimately, since supply isn't an issue up here, Canada's forest products industry will make as much money as it can based upon selling as much quantity as the (semi) free market will bear.
9 posted on 09/20/2006 1:52:19 PM PDT by GMMAC (Discover Canada governed by Conservatives: www.CanadianAlly.com)
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To: goldstategop

At least one Liberal (Joe Comuzzi) also voted with the Conservatives, despite a whip by Bill Graham.


10 posted on 09/21/2006 10:07:06 AM PDT by Heartofsong83
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