U.S. 'eager' to resolve softwood dispute: In return, Canada must support war on terrorism
Copyright 2001
The Ottawa Citizen
October 5, 2001
By Peter O'Neil
The U.S. government, which has offered trade concessions to several countries in return for support in the war on terrorism, is eager to resolve the softwood lumber trade dispute, Canadian industry and government officials said yesterday.
"We think there is a sense around Washington that this is an issue whose time has come," said David Emerson, co-chairman of the B.C. Lumber Trade Council, at the end of a series of meetings involving Canadian and U.S. government officials in Washington, D.C.
"We think there could be the potential to do something constructive in the next few weeks."
He said the U.S. industry, which initiated the process that has resulted in a job-killing, 19.3-per-cent duty on Canadian exports, hasn't budged in its demands for sweeping changes to Canadian forest policy. That hardline stance would suggest a trade battle lasting for months while job losses --16,000 in B.C. alone since the duty was imposed in August -- continue to mount.
But President George W. Bush, the U.S. Commerce Department and the U.S. Trade Representative's office don't necessarily have the same agenda or timetable as the U.S. Coalition for Fair Lumber Imports, Mr. Emerson said.
Prime Minister Jean Chretien played a role in the new momentum by raising softwood lumber during his recent meeting with Mr. Bush in Washington, held to discuss defence and national security issues related to terrorism, Mr. Emerson said.
He said there's speculation Mr. Bush wants the softwood dispute settled so the two countries can focus on security issues.
"It's certainly the kind of thing we're hearing."
A federal official confirmed that Mr. Chretien raised softwood lumber with Mr. Bush and that the two governments are "closer to a solution."
The Canadian Alliance, which initiated an emergency debate in the House of Commons on softwood yesterday, argued that Canada should take advantage of Mr. Bush's willingness to make trade concessions.
The U.S. government recently removed a duty on plywood imports from Indonesia, which has the world's largest Muslim population and which has supported Mr. Bush's campaign against terrorism.
"This demonstrates what is possible," said Alliance trade critic John Duncan.
"The stage is set for a push by the prime minister to break through and appeal directly to President Bush to set aside the CVD determination imposing a 19.3-per-cent duty on Canadian lumber," the B.C. MP said.
There has been speculation that any negotiated solution would include changes to Canadian forest practices, especially in B.C., and at least an interim Canadian export tax to replace the U.S. duties.
But International Trade Minister Pierre Pettigrew continued yesterday to reject the export tax option, and said Canada will win its challenges to the U.S. trade actions before the World Trade Organization.
"It is not the time to cave in," he said.