If it were not for destabilizing world security, one should really simply negotiate with the rest of the world's key trading countries and begin to give the USA its isolationist wish and cut them off from world trade.

This proves once more that having virtually a single trading partner is a very bad business practice. Hopefully all other such vulnerable industries in Canada are beginning to see the light and are hunting for new places to do business with.

You will note that the reference is made to some of the idled mills in the US coming back on stream, however guess what???? No specifics. Lets name some of these mills, and their locations. Lets be more specific.

If this is such a big issue, then the Federal Government should be giving a subsidy to Canadian Pulp Mills. They all burn Black Liquor in their processes and could add some diesel with little or no effort. That would certainly level the playing field, but guess what??? No indication that this is being done.

Pulp is being produced all over the world, South America, Finland, Sweden, Denmark, Norway, Austrailia, Malaysia,China, Japan, etc; etc; etc;. The Americans do not have a hope in hell of ever producing enough pulp to make a huge difference on the world demand. In fact the US is probably a net importer of woodpulp.

I suspect this is a big too, do, about nothing, however if it isnt, then lets get a little more specific, and get the Feds to make some significant statements as to what they are going to do about it.

gus, I agree, this is the perfect storm for Canada to start finding new customers. Maybe we need to be Europes Pantry for resources.

We pretty much have all the resources, we can grow all the wheat they need. We have all the minerals, and ore. Just sell it to them with some value added, to reduce shipping costs.

What's with the idea of buying planes from Italy. build it Canada, Three billion dollars, heck, that's enough money to start an industry. Have the Italians come to Canada and build it here, have the company sell out there country on the deal instead of our Canadian Government selling out on its population. We can do more than just supply the materials. Its our tax dollars, not private money. Put a little pressure on them. So if there was dirty money out there, than the ones who accepted this dirty money can be hung out to dry. Those who handed out the dirty money, took a risk.

you know, we have to stop this right now. or we will end up like the ugly americans, where the government is run by the lobbyists. Hang them out to dry, if they swing, that's too bad.

"Maybe we need to be Europes Pantry for resources."

and

"What's with the idea of buying planes from Italy. build it (in) Canada"

in the same post. Without a thought about the inconsistencies. Buy from us, we wont buy from you!

The subsidy is a big deal. US pulp mills will make alot more burning black liqour than selling pulp, which in turn will flood the market and drive down prices. That being said subsidizing our pulp mills to the same extent is not the answer.

So what we have to do is add diesel to our black liquor to qualify. Hmmmmm sounds pretty stupid to me. Isn't it more environmentally sound to just use natural gas like we are right now?

Diesel has to run through a refinery. I think the NATURAL Gas, just needs to be scrubbed and sent down the line. Hmmmmm, I wonder which one has a bigger impact.

The Americans simply has been sitting on their laurel for the past thirty years, and now they want to level out the playing field with government intervention.

Maybe the idea of buying American is a good idea. That's what the Chinese are doing, their buying up the companies. I think the west coast feeds Asia, The east feeds Europe.

I think the Canfors and the West Frasers need a pat on the back. I think they should be supported by the Bank of Canada, make 20 billion dollars in loans available to them to go down to the states and build new mega mills, so Canfor and West Fraser becomes the state of the art mills, in which the high cost producers will go broke, and they get to control the market. Dirty little trick, but it will work. Thus encourage Canadians to throw their money into these companies, the money is made in the states, but dividends are paid up here.

Automotive industry.... Hmmnm the Canadian Government is putting in 10 billion dollars to help out GM. Thus they become a part shareholder of GM. Sounds like a good position to me. couple of years down the road, we trade the shares to own the plants in Canada. then GMC can stand for General Motors of Canada. We produce trucks and cars for the Canadian market place. It might be a small market, but it should be sustainable. The Government eventually sells off the ownership like they did with Petro Canada.

Sure we may make only a dozen lines of vehicles with it, but its our GMC, and I think Canadians will support it.

Born in BC, I was stating that if it is our government buying planes, have it made in Canada. We may not have the Technology so let them set up camp in Canada.

The other side of the coin is, private industry in Europe can use our resources at fair market value.

There is a limited supply of trees in the USA, and most of it is privately owned. Anyone who thinks that you could go to the States and start building new pulp mills is dreaming.

There is no market in the world for additional pulp production.

If the American mills get additional money from the US Government by using diesel in thier pulping process, it does not logically follow that they will use this extra money to produce pulp. They may just put it in the bank. The subsidy is for using diesel not producing pulp.

Even if they do use it to produce more pulp there is a limited amount that they can produce, without building new mills, and finding new sources of fibre etc; This is not likely to happen in the short term.

Probably what will happen is that the subsidy will be ruled as taxable income by the IRS and it will be discontinued.

In any event I dont see it as a big problem

The limited supply of trees to the US is easily solved by that wonderful softwood lumber agreement Mr Harper shoved down our throats
To supply these US black liquor US government subsidized pulp mills, all the US pulp manufacturers need to do is import our raw logs from Canada. There is no tariff on raw log export as there is for Canadian lumber exporters to the US.
That would solve their limited supply of logs to these US companies.
I'm sure between Mr Harper and Mr Campbell this will be a cando solution for our American friends.

Canfor is right to talk about their bio energy capabilities... problem is they are not even 10% of their potential in this growing market, and why look back worrying about out dated American pulp mills with little fiber base, when they can be looking foreward... with the Canadian and provincial government working with them in a way that is not tax focused, but rather growth of industry focused. We have everything we need, other than the smarts from our 'political party' puppet fingers.

We have unlimited supply of dead pine wood that we do have to remove for fire and replant reasons, and we have capabilities and proven technology and we have people that want to work and we even have the capital to make it all happen... tax policy directs the capacity of free enterprise to breath, and business as usual taxation is for mature industry models, not industry in its infancy... we need to have the tax policy get out of the way of incubation industry like co-gen expansion in a way that allows for profit by private entrepreneurial investors as well as the established partners with the know how.

IMO offer each community an equivalent in the prime property tax rebate hypothetically forgone for the community... funded by the federal government for each new co-gen or mill built within a 50km radius of said town. The fed collects from the payroll taxes and potential profit taxes, and recycles this back into those communities through the property tax rebate where the community dollars help to stabilize the communities as well as subsidize the incubation of local industry.

Make it a 20-year progressive plan and see what happens... if nothing happens at least the attempt was made... if investors go all over it and every community now has an independent energy producer (maybe the communities are the investors with their rebate fund arrangements lol) and its a net zero tax cost to the rest of the country... then either way its a win-win just to try something like that.

A company like Canfor has the political clout and resources to make it happen... one would hope our politicians would have the integrity to keep it free enterprise in nature, and not monopoly capitalism. Monopoly capitalism will get nothing done, cost us way more as communities, and leave us with no control... its the politicians that have the ball in their court now it would seem....

Time will tell.