Softwood Endgame.

Posted on Tuesday, August 15 at 13:35 by drcaleb
Today's decision ``reverses the panel's conclusion'' from November and recommends that the U.S. ``bring its measure into conformity,'' according to a copy posted on the WTO's Web site. It's the third ruling to favor Canada since the July 1 deal, which would cancel all lawsuits related to the dispute and return about $4 billion of the $5 billion in duties collected to Canadian companies. [US lobbiest whining omitted] Unfair Subsidies The U.S. says Canadian provinces unfairly subsidize producers such as Canfor Corp. and Abitibi-Consolidated Inc. by failing to charge them market rates to harvest timber on government-owned land, allowing Canadian producers to sell under- priced timber on the American market. The WTO's latest ruling criticizes a U.S. practice known as "zeroing," which is used to calculate dumping margins and has previously been rejected in other WTO disputes. The methodology allows the U.S. to maximize import duties by selectively excluding some market price data. [more US lobbiest whining omitted] On July 14, the U.S. Court of International Trade said the U.S. Byrd Amendment violates the terms of the North American Free Trade Agreement, preventing the U.S. government from distributing duties to U.S. companies. On July 21, the same court ruled that the U.S. erred in continuing to impose duties after a panel of judges under NAFTA had ruled they were illegal. http://www.bloomberg.com/apps/news?pid=20601087&sid=aWzSK4r.2g0I&refer=home [Proofreader's note: this article was edited for spelling and typos on August 17, 2006]

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  1. by avatar Jacob
    Tue Aug 15, 2006 8:55 pm
    NOW THIS IS GOOD NEWS INDEED. IT CONFIRMS CANADA'S SOVEREIGNTY TO DETERMINE ITS OWN POLICIES ON LOGGING PRACTICES AND LUMBER PRICING. DO WE ALL UNDERTAND THIS: CANADA IS NOT PART OF THE UNITED STATES.

    NO UNDER-THE-TABLE NEGOTIATIONS ANYMORE. NO MORE APPEALS BEYOND THE "HIGHEST JUDGES" OF THE WORLD TRADE ORGANIZATION.

    JUST LIVE UP TO THE TREATY AND RETURN THE MONEY (WITH INTEREST) THAT HAS BEEN COLLECTED IMPROPERLY (HOW POLITE CAN I WRITE THIS?)

    AND SOON.

  2. Tue Aug 15, 2006 9:58 pm
    I've said this before: It has absolutely no bearing on what the US will or will not do. We have gone through the courts repeatedly with no end result in Canadas favour. Canada winning in the judgement, has no bearing on reality. The Americans as usual, will ignore the ruling and Harper will once again state that he and he alone will negotiate with them. We can win at the courts every day of the year and still NOT win. If you want to win with the Americans then you give them what THEY want.

    ---
    Expect little from life and get more from it.

  3. by Deacon
    Wed Aug 16, 2006 12:04 am
    "If you want to win with the Americans then you give them what THEY want."

    Or, if you're fortunate enough, you have to be able to hurt them, or better yet, be able to humiliate them into conceding.

    If you can do that, you have them.

    They'll hate you, but at least you will show them them you are an adversary to be respected.

    As the Chinese proverb goes: Let them hate so long as they fear.

    If you can hurt their bottom line financially, they'll give you a wide berth.

    Business leaders down there have no balls when it comes to showdowns they don't have overwhelming superiority in.


    ---
    "and the knowledge they fear is a weapon to be used against them"

    "The Weapon" - Rush

  4. by avatar canuck
    Wed Aug 16, 2006 12:20 am
    It has been demonstrated countless times that if any nation caves to US demands (especially if such demands are unfair, illegal, or outright harmful), then the US will only demand more. If a nation allows the US to steal from it, they will. Such is the case with the illegal softwood tariffs.

    The way I see it, if Ottawa doesn't fold if Washington decides to push, then Washington will stop pushing. In the end, I believe respect is at the core of such a situation. Who was the last PM that you had a great amount of respect for? Martin? Mulroney? My choice rests with Trudeau. Many may have hated him but he was always respected.

    Now is not the time for Canada to give-in as Harper is so glad to do. The WTO has opened the door for sanctioning of products from the US in order to recoup the illegal duties and it would be a severe blow to our nation if the government fails to follow-through.

  5. Wed Aug 16, 2006 3:29 am
    From: PC PARTY/parti PC <info@pcparty.org><br />
    Subject: F.Y.I.: WTO softwood lumber win in context.<br />
    <br />
    Two choices exist. One is to accept the Agreement as signed July 1st. The second is to continue to litigate the issue. For those in Canada who think that the government may have given up a lot, but has bought “peace” on this matter, think again.<br />
    <br />
    Certainly, this is the official U.S. position. Sean Spicer, a spokesman for the U.S. Trade Representative in Washington. “It's in the best interest of both our nations to reach a permanent solution to this issue and we hope that can be done soon.'' He continued on to say, "Once you come to an agreement, then you take the litigation out of the question." <br />
    <br />
    But some powerful lobby groups in the U.S. may have other ideas. Steve Swanson, chairman of the U.S. Coalition for Fair Lumber Imports whose members are "united in opposition to Canada's unfair lumber-trade practices, including its gross under-pricing of timber." held out the threat of continuing litigation yesterday. He stated, ‘There will be no changes.' Further, Swanson noted that the” the U.S. industry is not happy with the deal and many producers would prefer to continue with litigation before the World Trade Organization and NAFTA." <br />
    <br />
    Swanson's timing was a little ironic – his pronouncement came down just before yet another U.S. loss to Canada.<br />
    <br />
    "Canada has won another round in the legal wrangling over U.S. softwood lumber duties, this time before the World Trade Organization.", the first line of the widely distributed CP article to-day. In fact, Canada has won round after round before NAFTA panels and the United States Court of international Trade. All will mean nothing should the Agreement be implemented. <br />
    <br />
    Despite the fact that Canada has won every legal challenge, despite the fact that the U.S. government cannot control the lumber lobby – our government rushes headlong into what most analysts regard as a bad agreement. In fact, at the current price of lumber our companies would be paying a non-recoverable export tax of 15%. <a href="http://www.randomlengths.com/base.asp?s1=Daily_WoodWire&s2=Market_News&s3=Random_Lengths">http://www.randomlengths.com/base.asp?s1=Daily_WoodWire&s2=Market_News&s3=Random_Lengths</a><br />
    <br />
    Minister Emerson continues to express “optimism”. Whether that is justified will be known by this time next week.<br />
    <br />
    For your information links are provided to articles from several news agencies on the WTO win. Other materials will be forwarded to you from time to time.<br />
    <br />
    Should you have any questions, please do not hesitate to call. Should you wish to be removed from this list, simply reply to me with UNSUBSCRIBE in the subject line.<br />
    <br />
    Yours truly,<br />
    <br />
    Jim Love <br />
    Progressive Canadian (PC) Party <br />
    647-403-5519<br />
    jim.love@pcparty.org <br />
    <br />
    _____________________<br />
    No lumber changes: U.S.<br />
    'Dispute must be settled': Producers warn Canada alterations would scuttle deal<br />
    <a href="http://www.canada.com/nationalpost/financialpost/story.html?id=2719342d-0c61-4056-a322-5630caa0cc00&k=87212">http://www.canada.com/nationalpost/financialpost/story.html?id=2719342d-0c61-4056-a322-5630caa0cc00&k=87212</a><br />
    <br />
    PR Newswire. __________________________________________________________<br />
    Coalition for Fair Lumber Imports: WTO 'Zeroing' Ruling Unlikely to Be Significant<br />
    Tuesday August 15, 11:39 am ET <br />
    <a href="http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-15-2006/0004416579&EDATE">http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-15-2006/0004416579&EDATE</a> =<br />
    <br />
    About The Coalition for Fair Lumber Imports<br />
    <br />
    The U.S. Coalition for Fair Lumber Imports is an alliance of large and small lumber producers from around the country, joined by hundreds of thousands of their employees, and tens of thousands of woodland owners. The Coalition is united in opposition to Canada's unfair lumber-trade practices, including its gross under-pricing of timber. For more information, please visit the Coalition's website at <a href="http://www.fairlumbercoalition.org">www.fairlumbercoalition.org</a>.<br />
    <br />
    Canadian Press_________________________________________<br />
    Canada wins a WTO anti-dumping appeal in softwood lumber case<br />
    <a href="http://www.canada.com/vancouversun/news/business/story.html?id=219f231b-4736-4970-9179-9f3edf4c0634&k=31811">http://www.canada.com/vancouversun/news/business/story.html?id=219f231b-4736-4970-9179-9f3edf4c0634&k=31811</a><br />
    <br />
    Bloomberg___________________________________________<br />
    WTO Faults U.S. Lumber Duties on Canadian Imports (Update2)<br />
    <a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aWzSK4r.2g0I&refer=home">http://www.bloomberg.com/apps/news?pid=20601087&sid=aWzSK4r.2g0I&refer=home</a><br />
    <br />
    Reuters___________________________<br />
    WTO appeal body reverses lumber ruling<br />
    <a href="http://today.reuters.com/news/articlenews.aspx?type=politicsNews&storyID=2006-08-15T162211Z_01_L1524533_RTRUKOC_0_US-TRADE-WTO-LUMBER.xml&WTmodLoc=NewsHome-C3-politicsNews-3">http://today.reuters.com/news/articlenews.aspx?type=politicsNews&storyID=2006-08-15T162211Z_01_L1524533_RTRUKOC_0_US-TRADE-WTO-LUMBER.xml&WTmodLoc=NewsHome-C3-politicsNews-3</a><br />
    <br />
    Associated Press____________________<br />
    WTO Backs Canada in US Lumber Dispute<br />
    <a href="http://www.chron.com/disp/story.mpl/ap/fn/4118526.html">http://www.chron.com/disp/story.mpl/ap/fn/4118526.html</a><br />
    By ALEXANDER G. HIGGINS Associated Press Writer <br />

  6. by RPW
    Wed Aug 16, 2006 4:21 am
    <blockquote>As the Chinese proverb goes: Let them hate so long as they fear.</blockquote> The US feared losing it's power in the Middle East, and so went to war. If it fears losing Canada's resources, it could well do the same thing here. I mean, look at all the Quislings in Canada's business and government.......<p>---<br>"We can have a democracy or we can have great wealth concentrated in the hands of the few. We cannot have both."<br />
    - Justice Louis Brandeis

  7. Wed Aug 16, 2006 5:48 pm
    Your caps-lock is on, dude.

    The entire world revolves around 'UNDER-THE-TABLE-NEGOTIATIONS'.

    Here's the deal. Stephen went to visit George, agrees to expand our military action in Afghanistan, and support Israel in their war of expansion in Lebanon, and who knows WHAT else, and in return, Georgie calls up his buddies in the WTO and tells them to slap him on the hand and pay up.

    We didn't get anywhere with softwood under Martin because he wouldn't play ball.

    In any event, I'm assuming here that the US will appeal again, and will get off with only a wrist slap.

    Perhaps if instead, they had ruled that Canadian companies should have to observe the stricter environmental standards imposed in the US, for example, in return for the money back, we would be getting somewhere. But the WTO is completely anti-environment, so that would not happen.

    ---
    “The war is not meant to be won, it is meant to be continuous, the essential act of warfare is the destruction of the produce of human labour”

  8. Wed Aug 16, 2006 9:38 pm
    >Perhaps if instead, they had ruled that Canadian companies should have to observe the stricter environmental standards imposed in the US, for example<<

    I would like to see a comparison. The Enviroment Ministry in BC was at one time very stringent with logging practices. I made a living catering to logging companies who had to follow the guidelines. It would appear that the present Government is not as strict. However, I find it hard to believe that the capitalist system in the USA would dictate to their logging companies, any expendature that was not profitable to them. Enviromental issues certainly don't apply to oil corporations and public parks. In BC, private(corporate) investments in public parks has become an issue. Lodges are being constructed for the wealthy in these parks. I'm sure logging will allowed for that reason.

    ---
    Expect little from life and get more from it.

  9. Wed Aug 16, 2006 10:05 pm
    Canada has nothing comparable to the EPA, the most powerful and influencial Environmental agency in the world.

    It is a government inspired, media supported MYTH that Canada is an environmental leader. The opposite is true. We are one of the worst offenders in the first world club, second to the US, but only because of the difference in population by several orders of magnitude.

    I live on Vancouver island, BC, where we dump our untreated sewage RAW directly into the ocean, and we clearcut the sides of mountains into barren wastelands of dried up dirt and smoking stumps. Our Orcas are featured on all our Tourist Bureau ads, but they are filled with the most toxic chemicals imaginable, and are considered dangerous toxic waste when they wash up dead. Logging and WTO protesters are pepper-sprayed, rounded up and thrown in jail. Oil companies are given generous tax exemptions to drill at will. Most of the laws you indicate with regard to logging are either callously ignored (ie, 'fine me, I'll pay it') or they are a joke. I loved the one about about all clear-cuts requiring a 'scenic-fringe', meaning, put up a narrow line of trees between the clearcut and the road so that on casual glance by tourists driving by, nobody can see (and talk about back home) the disgusting wasteland beyond.

    ---
    “The war is not meant to be won, it is meant to be continuous, the essential act of warfare is the destruction of the produce of human labour”

  10. Wed Aug 16, 2006 10:10 pm
    Here's the part I'm not clear on.

    Is it not financially POSSIBLE for the Canadian lumber industry to GET SOME BALLS and simply refuse to sell ANYTHING to the US? Find other markets. Ship it all to China and Japan, they pay top dollar for our wood and they don't impose high punitive duties.

    Let the US fall apart on critical lumber shortages, until they back off. If they don't, never sell to them again, let them grow their own damn wood.

    ---
    “The war is not meant to be won, it is meant to be continuous, the essential act of warfare is the destruction of the produce of human labour”

  11. Wed Aug 16, 2006 10:24 pm
    Some markets are not available to our Softwood. Basically, it's cheaper for China to get Russian softwood via rail than ours via sea. Most of Europe doesn't want our softwood because we allow too many defects in it - they wouldn't use it for construction grade lumber. And they can get Danish or Finnish wood cheaper via rail.

    South of the Himalays is a good market; India, Bangledesh, Malasyia. They mostly have hardwoods locally, so softwood for construction would be a big market.

    Got a good line of credit? A used container ship goes cheap. Leasing is cheaper. Get a loan for the wood and fuel, and be your own boss!

    ---
    "I think it's important to always carry enough technology to restart civilization, should it be necessary." Mark Tilden

  12. Thu Aug 17, 2006 6:45 am
    "We didn't get anywhere with softwood under Martin because he wouldn't play ball."

    Good insight and worth repeating.

    But what ball are we now playing with?

    One notable item that stands out is Canada's newfound support for Israel's treachery - support that now matches up perfectly with Georgie's limitless support.

  13. Thu Aug 17, 2006 6:54 am
    I have a great deal of respect for countries that have managed to do business without bowing to US demands. It can be done, but you need a strong enough miltary to keep the US at bay. Having a well protected stash of deliverable nukes is particularly beneficial.

  14. Thu Aug 17, 2006 4:34 pm
    I disagree, Germany tells the US to stick it all the time, but they have a very small military and no nukes. No, it's a matter of political will and the people's desire. We are apathetic sheep. If we had taken to the streets and demanded serious action on this when they first tried it, and voted in someone to handle it, it would have been handled. The German voters are much more open to change. They have even voted in the Green Party a couple of times.

    ---
    “The war is not meant to be won, it is meant to be continuous, the essential act of warfare is the destruction of the produce of human labour”



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