Resolution of Softwood Lumber Issue
On April 27, 2006, Prime Minister Harper announced that Canada has reached an agreement with the United States on softwood lumber. Working closely with Minister Emerson and Canadian ambassador to the U.S. Michael Wilson, this landmark agreement resolves a dispute distrupting Canada-U.S. relations since 1982 when U.S. lumber producers first petitioned against Canadian softwood lumber imports under U.S. countervailing duty law. Previous Liberal governments had enacted two five-year deals, the last one expiring March 31, 2001. Since then, Canada had been locked in costly domestic and international litigation as U.S. lumber companies charge Canada with dumping subsidized lumber into the U.S. market.
The softwood lumber deal ensures no quotas or tariffs at current lumber prices, repayment of at least $4 billion in unfairly collected duties to lumber companies, and provincial and regional flexibility depending on operating conditions. “Canada’s bargaining position was strong; our conditions were clear; and this agreement delivers,” said the Prime Minister. “It’s a good deal that resolves this long-standing dispute and allows us to move on.” The deal also received support from Canada’s three major softwood producing provinces, British Columbia, Quebec and Ontario.
Since the initial announcement, the province of British Columbia has expressed dissatisfaction the agreement's details. Claiming industry support, B.C.'s forestry minister, Rich Coleman, has threatened to "derail the deal" if the provincial government's concerns are not met. Under contention are several details, including an "opt-out" clause (allowing either Canadian or U.S. governments to back out of the deal after 23 months).
A number of analysts, however, have described the deal as a shameful capitulation of Canadian interests. The deal includes language that requires all Canadian companies to drop legal actions against the U.S. government.
On September 12, 2006, Emerson and U.S Trade Representative Susan Schwab officially signed the deal in Ottawa.
The softwood lumber deal was passed on December 6, 2006 and received Royal Assent on December 12, 2006.
Read more about this topic: David Emerson
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