We Won, We Won, So What!
By Ben Meisner
What is becoming apparent in the lumber tariff war is that no matter how many times we win, we lose.
The latest ruling (the fourth that has reinforced Canada’s position) is simply another hollow victory. NAFTA has once again said that we are not subsidizing our lumber production. The US Commerce Department has cut the tariffs, but through it all there still remains (in American Banks)$4 Billion dollars of which just under $1 billion has been paid out from this area.
It illustrates just how little attention is being paid to the NAFTA agreement when it comes to lumber. What makes the issue more troublesome is the fact there are people within the US Congress who are trying to get that money paid out to the US producers, a real slap in the face of any ruling by NAFTA.
In the meantime, Canada has sent off its request to the WTO, (World Trade Organization) seeking counterveiling duties. So what are we proposing we put on the table to force those pesky Americans into dealing fairly? Well, we’ll cut off their wine from Canada, some cheese, and a few other items so obscure as to be easily forgotten. Are natural gas, oil, or Hydro electric power on the table? No. The very items that might get their attention,have been left off the table and so it should be no suprise if our neighbours to the South laugh at the manner in which we negotiate.
Every time we win in the NAFTA panel, the Americans simply say you won, you won, so what!
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There is one point that I do not understand, though. In the early days under NAFTA, some US companies sued Canada claiming millions of dollars because of trade restrictions. At least one company won an exorbitant amount, which seamed completely out of line to the supposed damage caused. I can't remember the details, although I am sure many readers can recall it.
The point I do not understand is why the Lumber producers, or Canada or BC have not aggressively pursued this avenue and sued for past and present damages and lost income and profits. An action for $20 Billion or so would get their attention, I think, and if successful would bring the issue to a pretty quick resolution. I know one lumber company was talking about it. What happened?
Does anyone have any information on this issue?