Canada Lowers Demands For Industry Support On Softwood Accord

By lowering his demands for industry backing, Emerson is increasing his chances of getting the deal implemented. The proposed agreement, reached July 1, would allow Canadian firms such as Canfor Corp. to recover about $4 billion in duties and end a dispute between the world's two largest trade partners. The government has given companies until Aug. 21 to back the accord. Canadian Prime Minister Stephen Harper, who was elected in January, made relations with the U.S. a campaign priority and argued the lumber disagreement hurt Canada's influence in Washington. The accord stipulates Canadian companies that have paid 95 percent of the duties to the U.S. must back the plan. Without this support, Emerson has said he won't present the accord to Parliament for approval. Canadian producers must also agree to drop all litigation. Canadian companies have criticized the agreement because it allows the U.S. government to quit it after two years. Canadian producers also want a less restrictive quota system so they can respond to changes in export demand. The B.C. Lumber Trade Council, the Ontario Forest Industries Association and the Quebec Forest Industry Council have asked for changes to the accord. Trevor Wakelin, chair of the Alberta Softwood Lumber Trade Council, told a Parliamentary committee on July 31 the government won't get the 95 percent support without changes. British Columbia Premier Gordon Campbell, leader of Canada's biggest lumber-producing province, yesterday endorsed the deal after the U.S. agreed to new concessions this week. http://www.bloomberg.com/apps/news?pid=20601082&sid=adaCTHdhRHQ0&refer=canada

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