U.S. To Cut Canadian Softwood Lumber Duties In Half

"...The U.S. lumber industry was quick to point out the new lower rate was due almost entirely to the stronger loonie, which lessens the impact of the alleged Canadian subsidies, and not a sudden change of heart by the Bush administration about whether Canada illegally props up its lumber industry.<br />
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Nor does the decision affect the contentious issue of who pockets the roughly $5-billion in duties collected by the United States since the dispute began in May of 2002.<br />
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Softwood lumber has become a key issue in the federal election. The NDP has urged Ottawa to get tough with the United States by taxing energy sales, while others have accused the Liberals of trying to buy votes in Quebec and British Columbia with the industry bailout.<br />
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The Paul Martin government has said it was waiting for a sign that Washington was going to abide by its free-trade obligations before resuming talks on softwood lumber. Mr. Martin would not comment on the announcement yesterday and, when specifically asked whether this was the sign, Mr. Peterson said it was a "positive step" but not acceptable as a permanent solution.<br />
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Canadians are mistaken if they think the Bush administration is backing down, said Harry Clark, a lawyer representing the Coalition for Fair Lumber Imports, a Washington-based lobby group.<br />
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"There's nothing like that going on here," Mr. Clark said. "There's no major change in the way the Department of Commerce is calculating the subsidy."<br />
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He agreed that Canada can thank its strong dollar for the lower rate. "That's the main driver."<br />
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Mr. Clark also suggested that next year's review could push the rate up again, particularly in the wake of the $1.5-billion bailout package the Martin government recently announced for the industry. Washington has accused Ottawa of piling new subsidies on top of old ones..."<br />
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<a href="http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20051207/SOFTWOOD07/TPNational">http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20051207/SOFTWOOD07/TPNational</a>

"Washington has accused Ottawa of piling new subsidies on top of old ones..."

Of course. Kick a guy in the nuts, then fault him for having to need a hand getting up off the ground.


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"If you must kill a man, it costs you nothing to be polite about it." Winston Churchill