WTO rules against United States on Canadian softwood lumber (for the 847,930,493rd time)

CBC Newsworld International ^ | May 27th | Newsworld Online

[ContentiousObjector]

WTO softwood ruling favours Canada Last Updated Tue, 27 May 2003 17:01:32

OTTAWA - The World Trade Organization has ruled in favour of Canada in its softwood lumber dispute with the United States.

The preliminary ruling, which is not binding, was released to the federal government Tuesday.

"Yet again, it appears that the U.S. is being told that its attempts to prove our softwood industry is subsidized are flawed," International Trade Minister Pierre Pettigrew said in a news release.

A final report on the dispute is expected in July.

The crux of the dispute is an American claim that Canada's system of charging low "stumpage" fees ? the fees lumber companies pay to the government for the right to cut trees on Crown-owned land ? amounted to a subsidy.

The current dispute was triggered in April 2001 when the United States Department of Commerce (DOC) launched an investigation of Canadian softwood lumber. It was the fourth such investigation in the past 20 years.

In August 2001, the DOC imposed a countervailing duty of 19.31 per cent on softwood lumber imports from Canada. Canada sells approximately $10 billion worth of lumber each year to the U.S.

That duty was later reduced to 18.79 per cent.

Canada's challenge to the WTO was launched in October after other efforts to resolve the dispute were unsuccessful.

The dispute is estimated to have cost Canadian lumber producers up to $1.5 billion in duties and cost thousands of jobs and closed some sawmills.

It might not be over yet, either. Washington can appeal the WTO ruling, a process that some experts say could take another six to eight months.

The North American Free Trade Agreement dispute resolution body is to rule on it in July. That group's ruling would be binding.

[ContentiousObjector]

This dispute is really getting pathetic. Basically we are punishing Canada because environmentalists and unions have destroyed the American lumber industry.

I am amazed the WTO is still even willing to hear this case given we have not changed our argument in the slightest and it has been dismissed on the grounds it is ridiculous over, and over and over again.

The position of the commerce department is basically as follows...

low taxes placed on Canadian lumber producers represent an illegal subsidy

by that standard other countries could complain to the WTO that lower American taxes represent an illegal subsidy on our part, it is no wonder we are laughed out of the WTO time and time again on this issue.

[Alberta's Child]

If there is one issue that would ever make me turn on the Bush administration, it is this one. The actions of the U.S. in this bullsh!t "trade dispute" are nothing short of disgraceful.

The irony of it is that this is precisely the issue that is causing a lot of hesitation amoung South American countries when it comes to signing on to a free-trade treaty for the entire western hemisphere. What's the point of signing an expanded version of NAFTA when the U.S. won't even abide by the original treaty?

[Alberta's Child]

The position of the Canadian lumber industry is basically as follows:

Of course our lumber is cheaper. There are a lot more f'ing trees up here, and we've been trading in a currency that is discounted by 35%-40% against the U.S. dollar for the last five years.

[MD_Willington_1976]

Why not use steel frame construction for housing. I have used both lumber and steel stud for construction when I was a sub-contractor in BC, steel studs are fairly easy to work with and have advantages over wood in some cases.

[Alberta's Child]

Why not use steel frame construction for housing.

Too expensive. Don't you remember? The U.S. slapped a tariff on imported steel, too. LOL.

[Thane_Banquo]

One of my criticisms of Bush is that he has been less than wise on the issue of trade, especially when he gave into the steel workers' unions and their inefficient bosses by raising the steel tariff.

I have a God-given right to use my money to buy foreign steel or Canadian hardwood at a price myself and the vendor thereof mutually agree upon, not a price inflated by the government to somehow "protect" me.

[Alberta's Child]

Many of the folks here on FR who believe that parts of Western Canada might someday become part of the United States are in fir a rude awakening. Those people out there are smart enough to tread carefully around any potential loss of their sovereignty to the U.S. government.

When asked to choose between Ottawa and Washington, most Albertans would select Calgary.

[crz]

Not to mention your stumpage prices are about one trillionth of what ours are.

[ContentiousObjector]

I can't say I would turn on them because I never liked them to start with, but I did vote for the clown in the last election, next year I will just stay home.

For me the first straw was obviously free trade, second straw was the absolute immaturity on the part of the administration when it comes to foreign affairs (The US and Europe didn't get along great during the Reagan years, but atleast both sides behaved like adults.) and the final straw is this schizophrenic economic policy that doesn't have a basis in any flavor of positive economics.

[Brilliant]

Just out of curiosity, does anyone remember when the WTO ruled IN FAVOR of the US on anything?

[RightWhale]

Steel and stone structures, wooden furnishings. That's the way to go.

[MD_Willington_1976]

I just like working with the steel stuff, cut it to length and screw it together, plus it is already straight and will not warp or rot, plus termites won't eat it and it will not burn...

[RightWhale]

Steel is it, the way to go. No more plywood stacks, zero maintenance; structural lumber has priced itself to near extinction.

[jwh_Denver]

When asked to choose between Ottawa and Washington, most Albertans would select Calgary.

Ottawa and Washington? I don't think many of us here on FR think the Western Provinces are full of idiots.

[crz]

Takes in excess of three times the energy to produce the same building products out of Steel and Concrete for homes and small office buildings.

[cksharks]

Bye Bye!!!!!!!

[ContentiousObjector]

why am i going somewhere?

I don't recall making a blood oath to worship Bush was a requirement for membership