Tweet
Key NAFTA softwood ruling favours Canada
Sandra Cordon
Canadian Press
Wednesday, August 10, 2005
OTTAWA -- Canada is claiming a major victory in the softwood lumber dispute with the U.S. following a key NAFTA panel ruling, and is demanding quick repayment of billions of dollars in penalties collected by Washington.
An extraordinary challenge panel under the North American Free Trade Agreement has dismissed American claims that an earlier NAFTA ruling in favour of Canada violated trade rules.
Canadian lumber industry spokesmen are already claiming this is the final blow that should end the dispute and are demanding quick return of the $5 billion in penalties so far paid to Washington.
But Washington quickly signalled isn't giving up the fight.
The U.S. industry has claimed that Canadian producers are unfairly subsidized through low fees paid to governments for timber - a claim the Canadian industry has long denied.
''We are extremely pleased that the (panel) dismissed the claims of the United States,'' Trade Minister Jim Peterson said in a statement.
''This is a binding decision that clearly eliminates the basis for U.S.-imposed duties on Canadian softwood lumber.
''We fully expect the United States to abide by this ruling, stop collecting duties and refund the duties collected over the past three years.''
Trade officials said they hope Wednesday's win will hasten a negotiated end to the dispute that began more than four years ago and has seriously threatened Canada's $10-billion softwood export sector.
But Washington isn't accepting that conclusion, insisting more negotiations are needed before the longrunning dispute can be wrapped up.
''We are, of course, disappointed with the (panel's) decision, but it will have no impact on the antidumping and countervailing duty orders,'' said Neena Moorjani, press secretary for the U.S. Trade Representative, Rob Portman.
''We continue to have concerns about Canadian pricing and forestry practices. We believe that a negotiated solution is in the best interests of both the United States and Canada, and that litigation will not resolve the dispute.''
Peterson and Portman, his American counterpart, have resumed talks aimed at negotiating a solution to the softwood dispute. They're expected to meet again as early as next week.
A trade official said the Americans still have some options outside NAFTA, including a formal constitutional challenge.
Canada has been fighting the combined countervail and antidumping duties through legal channels as well as in high-level negotiations since Washington began collecting duties in 2002.
Although Canada has won many of legal battles under the NAFTA, as well as at the World Trade Organization, that has had little real effect in the dispute.
Still, it has helped to lower the value of the combined duties paid by lumber exporters down to about 21 per cent from their high of 27 per cent when duties were first imposed in May 2002.
That's when the U.S. Commerce Department first accepted American lumber producers' claims that Canadian softwood was unfairly subsidized.
Since then, trade officials and politicians from both countries have tried to negotiate a new softwood deal, most recently meeting in late July with plans to resume talks in Ottawa later this month.
Canadian producers sell about $10 billion worth of spruce, pine and fir lumber a year to the U.S. home-construction and renovation sectors.
© The Canadian Press 2005
Sandra Cordon
Canadian Press
Wednesday, August 10, 2005
OTTAWA -- Canada is claiming a major victory in the softwood lumber dispute with the U.S. following a key NAFTA panel ruling, and is demanding quick repayment of billions of dollars in penalties collected by Washington.
An extraordinary challenge panel under the North American Free Trade Agreement has dismissed American claims that an earlier NAFTA ruling in favour of Canada violated trade rules.
Canadian lumber industry spokesmen are already claiming this is the final blow that should end the dispute and are demanding quick return of the $5 billion in penalties so far paid to Washington.
But Washington quickly signalled isn't giving up the fight.
The U.S. industry has claimed that Canadian producers are unfairly subsidized through low fees paid to governments for timber - a claim the Canadian industry has long denied.
''We are extremely pleased that the (panel) dismissed the claims of the United States,'' Trade Minister Jim Peterson said in a statement.
''This is a binding decision that clearly eliminates the basis for U.S.-imposed duties on Canadian softwood lumber.
''We fully expect the United States to abide by this ruling, stop collecting duties and refund the duties collected over the past three years.''
Trade officials said they hope Wednesday's win will hasten a negotiated end to the dispute that began more than four years ago and has seriously threatened Canada's $10-billion softwood export sector.
But Washington isn't accepting that conclusion, insisting more negotiations are needed before the longrunning dispute can be wrapped up.
''We are, of course, disappointed with the (panel's) decision, but it will have no impact on the antidumping and countervailing duty orders,'' said Neena Moorjani, press secretary for the U.S. Trade Representative, Rob Portman.
''We continue to have concerns about Canadian pricing and forestry practices. We believe that a negotiated solution is in the best interests of both the United States and Canada, and that litigation will not resolve the dispute.''
Peterson and Portman, his American counterpart, have resumed talks aimed at negotiating a solution to the softwood dispute. They're expected to meet again as early as next week.
A trade official said the Americans still have some options outside NAFTA, including a formal constitutional challenge.
Canada has been fighting the combined countervail and antidumping duties through legal channels as well as in high-level negotiations since Washington began collecting duties in 2002.
Although Canada has won many of legal battles under the NAFTA, as well as at the World Trade Organization, that has had little real effect in the dispute.
Still, it has helped to lower the value of the combined duties paid by lumber exporters down to about 21 per cent from their high of 27 per cent when duties were first imposed in May 2002.
That's when the U.S. Commerce Department first accepted American lumber producers' claims that Canadian softwood was unfairly subsidized.
Since then, trade officials and politicians from both countries have tried to negotiate a new softwood deal, most recently meeting in late July with plans to resume talks in Ottawa later this month.
Canadian producers sell about $10 billion worth of spruce, pine and fir lumber a year to the U.S. home-construction and renovation sectors.
© The Canadian Press 2005
We believe that a negotiated solution is in the best interests of both the United States and Canada, and that litigation will not resolve the dispute.
IOWs, 'we get our asses handed to us everytime this goes before a competent body, therefore please give in and agree to trade restrictions.'
NOT!
Comment