The threat of retaliatory tariffs is the latest escalation in the four-year dispute over the $7.5 billion of softwood lumber Canada exports annually to its largest trading partner. The U.S. claims Canadian provinces give sawmills an unfair subsidy by not charging market rates to harvest timber on government land, and imposed tariffs in 2002.
Canada, which in February asked the World Trade Organization for permission to tag U.S. imports with retaliatory duties, expects a ruling from the trade organization by ``mid-2006,'' said Jacqueline Larocque, a spokeswoman for Canadian Trade Minister Jim Peterson.
An appeals panel formed under the North American Free Trade Agreement rejected U.S. legal challenges earlier this month, which Canadian officials contend requires the return of C$5 billion ($4.17 billion) of tariffs charged on lumber exports by companies such as Canfor, Canada's biggest lumber maker, and Tembec Inc., Canada's biggest pulp producer.
`Strong Reaction'
``The industry clearly wants to see a strong reaction,'' said Andrew Casey, vice president of government relations and communications for the Forest Products Association of Canada in Ottawa. ``It's gotten to the point where the entire trading relationship between the two countries is at risk.''
Tembec and Canfor are association members.
Canada called off negotiations that were scheduled for Aug. 22 in Ottawa after the U.S. said it would ignore the panel's ruling. U.S. officials have said they want a negotiated settlement to the dispute.
The U.S. industry said any retaliation is a long way off, and dismissed Emerson's comments today as ``saber rattling.''
``No such retaliation has been authorized, and I don't see how it could be anytime soon,'' said Harry Clark, a lawyer for the U.S. lumber industry, the Coalition for Fair Lumber Imports. ``It will be months at the earliest,'' before the WTO could approve Canada's petitions to apply tariffs, Clark said.
http://www.bloomberg.com/apps/news?pid=10000082&sid=aaBdi8lXfKwI&refer=canada
Note: http://www.bloomberg.co...
Canada Mulls Tariffs Over Lumber Spat, Emerson Says
Posted on Thursday, August 25 at 09:50 by jensonjContributed By
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I suppose stealing from Canadians is far better than being bombed. If anything , it should certainly serve as a wakeup call to Canadians that we are alone. That if we needed help from the United States , it would not come without a price.
Personally , I see no point in counter tariffs. If the Americans are willing to steal the 5 billion dollars , then they are fully capable and willing to take 5 billion more. Or 10 billion. Or 50 billion. They simply don't care.
We are at the mercy of the world's most powerful nation (in terms of weapons and cash)....
We continue to trade with them. We don't have a choice. But at the same time , we need to expand our market much faster than we're doing at the moment.
If we don't , simply put , we're screwed.
Neither of these guys can figure out abrogate NAFTA, end of problem! But of course it is the solution to the long term plan to destroy Canada.
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If I stand for my country today...will my country be here to stand for me tomorrow?
Now you know how we feel when we look north.
The unlawful use or threatened use of protective customs tariffs, duties and quotas thus wrecking targeted industries from beening competitive, force or violence by a free trade nation against another free trade nation with the intention of intimidating or coercing societies or governments, often for ideological or political reasons instead of as a means to defend against trade infractions. Usually applied against the free trade nation with the least means to defend itself.
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Perception is two thirds of what we perceive reality to be.
Difficult decisions are a privilege of rank.
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These days, if you are not confused, you are not thinking clearly. Mrs. Irene Peters