Softwood Deal Possible This Year?
By 250 News
Monday, April 03, 2006 04:02 AM
Some encouraging news over the weekend on the softwood dispute from the American Ambassador to Canada.
Despite the fact there was no word of a resolution to the matter coming from the Mexican Summit where Prime Minister Harper and U.S. President George Bush huddled, Ambassador David Wilkins is expressing a fresh optimism.
The Ambassador was being interviewed on CTV's Question Period , Sunday and expressed a certain confidence the matter can be resolved by "friends". He also expressed a timeline when he said he had no doubt Canadians and Americans wanted to "resolve this issue and resolve it this year."
As Prime Minister Harper and President Bush settled in for their talks on Thursday, speculation there would be a resolution to the dispute meant gains on the stock market for lumber companies. Canfor's stock climbed 3.47% on the T.S.E. Thursday.
Wilkins says that while the leaders didn't reach any agreement, the summit did provide an opportunity for the two to "gain awareness" and give the matter a fresh look.
Business analysts however wonder how rapid an agreement can be made as they suggest there is just as much disagreement between east and west Canadian producers as there is north and south. In Canada, the eastern producers want all the duties returned ( about $5 billion worth) but there is speculation producers in the west would be willing to trade off some of those dollars in exchange for finality.
Prime Minster Harper is expected to meet with Bush again this June in Washington.
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Posted by: ammonra on April 3 2006 11:27 AM
The last I can remember, the USA wants to negotiate and Canada wants to settle based on the NAFTA rulings and stay with the NAFTA agreement which encompases trade in lumber and other forest products.
So, there is nothing there that needs 6+ months to come to an agreement. It is simple. Follow NAFTA rules and return the money. NAFTA is finality.
By the end of the year, we will likely have another election and if the matter of softwood trade is still not settled, it will go on for another year.
One thing is obvious, Emerson is turning out to be a prima donna who is useless at the softwood lumber issue table. He did not come with any great revelations to the conservative side of the house, revelations which would see a deal being cut very quickly.
Recall that he was supposed to have had one ready according to some reports.
He is turning out to be high maintenance and a hole in the conservatives' armour.