What's Everyone Saying About the Softwood Deal?
By 250 News
Friday, April 28, 2006 04:01 AM
The Prime Minister likes the deal, Premier Gordon Campbell likes the deal.
Here are some of the details:
-Canada maintains a 34% share of the U.S. market
-The U.S. will pay back 80% of the duties collected at the border
-Canada will pay a tax when the U.S. lumber prices slip below a certain level
-B.C.’s share of the market is protected
-Both sides drop all their legal battles
According to reports and media releases, here’s how reaction is shaping up on both sides of the border:
In an official news release the The BC Lumber Trade Council says it has given “conditional support to the framework agreement”
"Each company had to assess the framework agreement through its own lens and individual analysis," said John Allan, President of the BC Lumber Trade Council. "Agreements of this nature are rarely perfect and the complexities of the issues will always make unqualified support elusive," Allan said.
Roy Nagel of the Central Interior Logging Association is quoted as saying it would appear the agreement is more about making peace with Washington than helping the Canadian industry.
Canadian Business On Line says news of the deal has had an impact on stocks “The stock of Canada's biggest softwood lumber producer, Vancouver-based Canfor Corp. (TSX:CFP), fell 38 cents to $14.36 on Thursday. Montreal-based Tembec (TSX:TBC) saw its shares dive more than nine per cent, or 20 cents, to $1.90, while shares of Abitibi-Consolidated Inc. (TSX:A), a major newsprint and lumber producer, lost seven cents to close at $4.78. Western Forest Products Inc. (TSX:WEF) added seven cents to close at $2.34, after gaining ground it lost in the morning.”
On the other side of the border, the Coalition for Fair Lumber Imports issued a news release saying it expressed its support for the settlement of the dispute: “The Coalition has long sought to end Canadian provinces’ sale of timber (standing trees) to Canadian lumber companies for a small fraction of the timber’s market value. This subsidy has cost multitudes of U.S. jobs and scores of competitive U.S. sawmills. The Coalition initiated unfair trade proceedings before U.S. agencies in 2001, and the U.S. government has maintained countervailing (anti-subsidy) and antidumping duties on Canadian lumber since that time. “All we have ever asked is that Canadian timber and logs be sold in open and competitive markets,” said Swanson. He concluded, “We hope that the Canadian governments take this opportunity to move to market sales.”
When it was clear there were negotiations underway, the National Association of Home Builders in the U.S. issued a release expressing concerns:
“Should the U.S. and Canada agree to a settlement resulting in new trade barriers that were to limit Canadian lumber shipments into the U.S., NAHB will help builders seek lumber sources from other countries and to assist builders who want to engage in the use of alternative building materials wherever practical." The release went on to say “From a policy perspective, NAHB will work with the U.S. government to increase the supply of German and Swedish lumber, and we will consider options to import Russian softwood from Siberian forests,” he said. “In addition, we will encourage interested builders to explore using steel and other building materials and construction techniques”
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Canada won all the WTO and NAFTA decisions.
The big bully walked away with a thousand million illegally collected dollars and an agreement that may just contravene NAFTA and WTO and could be challenged by other members in the future.
Might won over right again.
There isn't much to celebrate except that we now know for CERTAIN who ended up on top again - the very neighbourly USA.