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U.S. LUMBER INDUSTRY CHALLENGING THE CONSTITUTIONALITY OF NAFTA DISPUTE SETTLEMENT SYSTEM
COALITION FOR FAIR LUMBER IMPORTS ^ | September 13, 2005 | COALITION FOR FAIR LUMBER IMPORTS

Posted on 12/22/2005 8:09:53 AM PST by hedgetrimmer

WASHINGTON, DC—Steve Swanson, Chairman of the Coalition for Fair Lumber Imports, announced today that the U.S. lumber industry is challenging the constitutionality of a dispute settlement system under the North American Free Trade Agreement, commonly referred to as Chapter 19. The Chapter 19 system allows bi-national panels of individuals to make binding decisions about application of U.S. law to U.S. unfair trade findings contrary to due process and other constitutional requirements.

“The Constitution does not permit these panels to be the final arbiter of whether U.S. law provides for relief from unfair subsidies and dumping for U.S. producers and workers,” said Swanson. “The challenge is against the Chapter 19 dispute mechanism, not the NAFTA as a whole.”

United States courts ordinarily decide appeals of findings that imports are subsidized or dumped. NAFTA Chapter 19 made findings regarding Canadian and Mexican imports appealable only to panels of individuals, some of whom are not U.S. citizens and none of whom is accountable within the U.S. government. Nothing like Chapter 19 has been included in other trade agreements, including DR-CAFTA.

When the Congress first considered Chapter 19 in 1988, the U.S. Justice Department warned that the Chapter 19 system would be unconstitutional. The U.S. government has repeatedly found that Canadian lumber imports are subsidized and dumped and threaten injury to the U.S. lumber industry. The World Trade Organization has approved these findings, and countervailing (anti-subsidy) and antidumping duties have been imposed on Canadian lumber imports since 2002. But a NAFTA dispute panel has exceeded its authority by directing the U.S. International Trade Commission to reverse a finding that unfair imports threaten the U.S. lumber industry. The U.S. government requested that one panelist be removed because of a conflict of interest, but he stayed on the panel.

“As NAFTA panels threaten to subvert application of the trade laws to unfair lumber imports, we must enforce our constitutional right to due process and accountable decision-making,” explained Swanson. “If Canadian lumber subsidies and dumping are not fully addressed, the unfair imports will result in scores of sawmill closures, cause thousands of job losses, and undermine millions of family timberland owners.” Swanson concluded, “All that the U.S. industry has ever requested is an end to Canadian lumber subsidies and dumping through open and competitive timber and log markets. The U.S. industry vigorously supports the U.S. government’s pursuit of free trade principles and a negotiated settlement based on reasonable Canadian commitments to timber policy reform. Until then, we will defend our rights to relief under U.S. law.”

The Coalition’s filing of this case comports with statutory requirements that it be initiated within 30 days of the end of a Chapter 19 proceeding.


TOPICS: Business/Economy; Canada; Constitution/Conservatism; Foreign Affairs; Government; News/Current Events
KEYWORDS: constitutionality; freetrade; nafta; redistribution; timber; unelectedpanel
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To: hedgetrimmer
The U.S. industry vigorously supports the U.S. government’s pursuit of free trade principles and a negotiated settlement based on reasonable Canadian commitments to timber policy reform.

These saps wanted it, now they got it...

21 posted on 12/22/2005 5:25:37 PM PST by Iscool (Start your own revolution by voting for the candidates the media (and gov't) tells you cannot win.)
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To: ConservativeMind
If Japan wanted to give every American a car for free, our government should have no capacity to stop it to protect union (or other) jobs.

Hey, I'm with you...I think we Americans should all ban together and refuse to buy anything made in America...American goods are far too expensive...

22 posted on 12/22/2005 5:31:46 PM PST by Iscool (Start your own revolution by voting for the candidates the media (and gov't) tells you cannot win.)
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To: hedgetrimmer
Bump.

Now we will see whether there is any Constitutional honesty left in the Courts...

23 posted on 12/22/2005 6:18:12 PM PST by Paul Ross (My idea of American policy toward the Soviet Union is simple...It is this, 'We win and they lose.')
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To: Paul Ross
Now we will see whether there is any Constitutional honesty left in the Courts...

I want to believe there is.
24 posted on 12/22/2005 6:19:36 PM PST by hedgetrimmer
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To: JoeFromSidney
But aren't home-buyers American? And aren't there more American home-buyers than Americans in the lumber industry? How does keeping out low-cost lumber constitute looking out for Americans first?

Apparently you missed the point. Lumber is such a small fraction of the cost of building a home that it is almost negligible.

25 posted on 12/22/2005 7:46:12 PM PST by raybbr
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To: JoeFromSidney
How does keeping out low-cost lumber constitute looking out for Americans first?

Looking out for Americans first, means first defending the Constitution. Letting in so-called low cost lumber while undermining Constitutional rights does no American citizen a favor. It is our duty as citizens to protect the rights of all citizens, and this is done by adhering to our Constitution, which protects our right to a representative government.
26 posted on 12/22/2005 9:50:03 PM PST by hedgetrimmer
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To: hedgetrimmer

Thanks for the ping. I was wondering how long this would take, seems we may find out how many Surpreme Court members
are CFR goons.


27 posted on 12/23/2005 5:20:50 AM PST by antisocial (Texas SCV - Deo Vindice)
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To: hedgetrimmer

Dumping is one thing when it is the price of the good that is dumped. What about when it's the wage... nobody wants to talk about that forthrightly.


28 posted on 12/23/2005 6:44:19 PM PST by Havoc (President George and King George.. coincidence?)
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To: raybbr
Lumber is such a small fraction of the cost of building a home that it is almost negligible.

OMG LOL. You actually believe that? If I build a house, will you donate the lumber?

29 posted on 12/23/2005 6:48:42 PM PST by 1rudeboy
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To: hedgetrimmer; Toddsterpatriot

We have a Constitutional right to expensive lumber! To the barricades!


30 posted on 12/23/2005 6:49:55 PM PST by 1rudeboy
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To: hedgetrimmer

Nice to see you've re-discovered the folks at Public Citizen.


31 posted on 12/23/2005 6:58:08 PM PST by 1rudeboy
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To: hedgetrimmer; Mase; expat_panama; 1rudeboy; EagleUSA; Always Right
NAFTA panels make binding decisions about application of domestic U.S. law. Again, their opinions have the force of U.S. law, like a court order.

And yet the U.S. has ignored these binding decisions. I guess they don't have the force of U.S. law, do they?

32 posted on 12/23/2005 7:27:35 PM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: hedgetrimmer
and this is done by adhering to our Constitution, which protects our right to a representative government.

Our representative government is protecting you from low cost Canadian lumber. You read about the tariffs, didn't you?

33 posted on 12/23/2005 7:28:48 PM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: Havoc
Dumping is one thing when it is the price of the good that is dumped.

I just hope the U.N. doesn't tell us to drop these lumber tariffs.

34 posted on 12/23/2005 7:31:54 PM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: Toddsterpatriot
Check what I've found:

The current softwood lumber dispute (Lumber IV) commenced in April of 2001. From May 22, 2002 to Dec 20, 2004 most Canadian softwood lumber exported to the US was subject to a combined countervailing and anti-dumping duty of 27%, collected by US Customs. From December 20, 2004 to December 12, 2005 the duties collected were 20%. On December 12, 2005, the duties collected at the border were reduced to 10.81%.
Government of British Columbia

Something smells unconstitutional. Not.

35 posted on 12/23/2005 7:35:45 PM PST by 1rudeboy
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To: 1rudeboy

Reduce those tariffs you silly hosers.

36 posted on 12/23/2005 7:42:32 PM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: Toddsterpatriot

Why, you afraid they might have authority that your representatives gave them? lol.


37 posted on 12/24/2005 7:21:06 AM PST by Havoc (President George and King George.. coincidence?)
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To: hedgetrimmer

Isn't NAFTA an "agreement," rather than a treaty, which would have had to be ratified by the senate? I was under the impression that was the case.

If that is the case, then such an "agreement" isn't valid under the Constitution anyway, since there's no such thing mentioned in the Constitution. And it certainly can't superceed any US laws.

Mark


38 posted on 12/24/2005 7:24:55 AM PST by MarkL (When Kaylee says "No power in the `verse can stop me," it's cute. When River says it, it's scary!)
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To: Havoc
Unlike you, I understand that the UN has no authority over the United States.
39 posted on 12/24/2005 9:01:11 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: MarkL
Isn't NAFTA an "agreement," rather than a treaty, which would have had to be ratified by the senate? I was under the impression that was the case.

NAFTA was passed by a majority in the House and Senate.

And it certainly can't superceed any US laws.

You are correct, NAFTA does not have greater authority than the US Constitution. Neither does any treaty.

40 posted on 12/24/2005 9:04:01 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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