Posted on 10/14/2005 12:36:22 PM PDT by wjersey
OTTAWA - Prime Minister Paul Martin has warned U.S. President George W. Bush that Canada will wage its battle over softwood lumber in American courts — and in the court of public opinion. Martin spoke with Bush by phone Friday but they failed to make any progress on the softwood issue.
Neither leader budged from his original position during the 20-minute chat, officials said.
Bush maintained that he would prefer a negotiated settlement, said a spokeswoman for Martin.
The prime minister insisted there’s no reason for Canada to negotiate because it has already won all NAFTA challenges to U.S. tariffs and duties that have cost Canadian lumber firms $5 billion.
“Canada has won panel decision after panel decision,” Martin said while attending the inauguration of a new Quebec border crossing with the U.S.
“Fundamentally, what one might call the final court of appeal under NAFTA has also confirmed the Canadian position.
“And that should be respected.”
A NAFTA extraordinary challenge committee ruled in August that Canadian exports posed no threat of injury to American producers.
But the U.S. government signalled it would not comply with the ruling, saying it was already complying with a World Trade Organization decision on the matter.
Martin told Bush that Canada will continue fighting in the U.S. courts and by appealing to Americans who would benefit from cheaper Canadian lumber — something Martin suggested would be an embarrassment to Bush.
“(Martin) told the president that we view it as a shame that we should have to take the U.S. to court in its own country to make that point,” said a Martin spokesman.
“But we’re more than prepared to do so and we will do so.”
Canadian lumber exporters have paid more than $5 billion in duties since May 2002, when American lumber producers filed their fourth trade complaint in 20 years.
Canada estimates that, based on past NAFTA rulings, the U.S. should pay back at least $3.5 billion of the duties collected so far.
For the fifth time, a dispute resolution panel under the North American Free Trade Agreement has ordered U.S. trade officials to review the way they determine Canadian lumber exports are subsidized.
The NAFTA panel, made up of three American and two Canadian trade experts, gave the United States until Oct. 28 to comply.
If the panel’s ruling is implemented, the countervailing duty rate would fall below one per cent, which under trade rules would result in its cancellation, according to the B.C. Lumber Trade Council.
During Friday’s phone conversation, the two leaders also discussed the U.S. plan to drill for oil in an Alaska Arctic wildlife refugee — something Canada opposes.
Bush insisted he must move forward because his country needs the oil.
While OPEC and some other producers play out their mercantilist fantasies, trying to use commodities to enhance their political leverage, the US position has typically been to avoid playing anyone's game, to break down trade empires, to force open closed markets, and to break down blockades (with some notable exceptions having usually to do with "pariah" nations).
We are often called an "empire" but in reality we are the 'un'-empire. We keep getting in the way of empires who are trying to birth themselves.
LOL funny pic
Oooooo! A phone battle! I'll bet they called in their entire military to fight this one!
Let's thank them for reaching out and touching us by sending them all our Mexicans. Canadia doesn't have enough diversity.
I say we ban hockey in this country as too violent. Then let the Canucks play in Saskatoon, Moose Head, Lethbridge and Ottawa. The league will go the same way as Canadian Football with it's stupid three downs, you're out.
"So I think your argument is that because we buy so much from overseas relative to how much we sell then we can have tarrifs without fear of retaliation."
My argument is that just because we impose fines on a percentage of trade with a given country does not mean we cannot thus claim to be advocates of free trade. The fact is that trade with Canada has boomed over the past decade+, with the United States consuming all but a minority of Canadian exports. Our markets are incredibly open to their goods, and compared to most other nations our barriers/fees on exports from other nations are small.
I'd argue the tariffs are significant. And the net result is just the same as a tax. The American government collects the money home buyers pay more. But this is worse than a tax because it does everything a tax does plus invites retaliation.
"The 12.6 percent duty will be added to the 19.3 percent tariff put on Canadian softwood lumber in August"
"The U.S. lumber industry had been pressing for tariffs, saying they're needed to save jobs, while opponents say they will drive up prices of wood products for U.S. consumers. An economist for a homebuilders group says the two tariffs would add about $1,500 to the price of an average home."
http://forests.org/archive/canada/imwoodta.htm
I got it from a very funny Canadian cousin.
Besides softwood Canada has an overabundance of comedians.
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