PM accused of hurting free trade
Last Updated Sat, 08 Oct 2005 08:03:45 EDT
CBC News
Business leaders and opposition politicians are criticizing a speech by Paul Martin in which he suggested that the softwood lumber dispute could hurt other U.S.-Canada trade activities.
In a hard-hitting speech in New York Thursday, Martin referred to U.S. reluctance to live up to NAFTA rulings favorable to Canada on softwood lumber tariffs as "nonsense and a breach of faith".
Martin hinted that the dispute could spill over into other trade areas, and could even affect the ready access by the U.S. to Canadian energy resources.
The U.S. anticipates increasing energy imports from Canada, including imports of natural gas this winter to help offset domestic U.S. production capacity reduced by damage from the recent Gulf Coast hurricanes, Katrina and Rita.
Peter MacKay, deputy leader of the Conservative Party, said the linkage between softwood and energy is "very dangerous". He urged the government to "get back to diplomacy at the highest levels".
The fear in some business circles is that any spillover from softwood to other trade arrangements could lead to a trade war with the U.S. that could impair the effectiveness of the North America Free Trade Agreement. The agreement is generally seen by the business community as working well for Canada.
Anne Golden, president of the Conference Board of Canada, was dismissive of the Martin approach. "We need NAFTA; we've done very well under NAFTA," she told The Globe and Mail. "It's not in Canada's interest to abandon it".
And Jack Mintz, head of the C.D. Howe Institute, described the linkage between softwood and other trade areas as "non-sensical. But to settle the softwood lumber dispute, does that mean we undersell energy products"?
Finance Minister Ralph Goodale appeared to downplay the impact of Martin's speech, denying that he had linked softwood and energy trade.
"The prime minister did not make a linkage between softwood and energy, but he did make the point that NAFTA itself is drawn into question when NAFTA's rules are obviously ignored."
In his New York speech Martin accused the U.S. of undermining the dispute settlement mechanism in the free trade agreement and he pointed out that the same mechanism governs free trade in other areas, including energy.
The prime minister also hinted that Canada could find other markets for raw materials, especially in major emerging markets such as India and China.
"Yes, I did a tough speech", Martin said Friday. "But it had to be said, it had to be done. We are close friends, and you've got to be able to tell your close friends the truth.
Finally, the tough speech we've been waiting for and everybody gets nervous. I agree with Martin. It had to be said.
Last Updated Sat, 08 Oct 2005 08:03:45 EDT
CBC News
Business leaders and opposition politicians are criticizing a speech by Paul Martin in which he suggested that the softwood lumber dispute could hurt other U.S.-Canada trade activities.
In a hard-hitting speech in New York Thursday, Martin referred to U.S. reluctance to live up to NAFTA rulings favorable to Canada on softwood lumber tariffs as "nonsense and a breach of faith".
Martin hinted that the dispute could spill over into other trade areas, and could even affect the ready access by the U.S. to Canadian energy resources.
The U.S. anticipates increasing energy imports from Canada, including imports of natural gas this winter to help offset domestic U.S. production capacity reduced by damage from the recent Gulf Coast hurricanes, Katrina and Rita.
Peter MacKay, deputy leader of the Conservative Party, said the linkage between softwood and energy is "very dangerous". He urged the government to "get back to diplomacy at the highest levels".
The fear in some business circles is that any spillover from softwood to other trade arrangements could lead to a trade war with the U.S. that could impair the effectiveness of the North America Free Trade Agreement. The agreement is generally seen by the business community as working well for Canada.
Anne Golden, president of the Conference Board of Canada, was dismissive of the Martin approach. "We need NAFTA; we've done very well under NAFTA," she told The Globe and Mail. "It's not in Canada's interest to abandon it".
And Jack Mintz, head of the C.D. Howe Institute, described the linkage between softwood and other trade areas as "non-sensical. But to settle the softwood lumber dispute, does that mean we undersell energy products"?
Finance Minister Ralph Goodale appeared to downplay the impact of Martin's speech, denying that he had linked softwood and energy trade.
"The prime minister did not make a linkage between softwood and energy, but he did make the point that NAFTA itself is drawn into question when NAFTA's rules are obviously ignored."
In his New York speech Martin accused the U.S. of undermining the dispute settlement mechanism in the free trade agreement and he pointed out that the same mechanism governs free trade in other areas, including energy.
The prime minister also hinted that Canada could find other markets for raw materials, especially in major emerging markets such as India and China.
"Yes, I did a tough speech", Martin said Friday. "But it had to be said, it had to be done. We are close friends, and you've got to be able to tell your close friends the truth.
Finally, the tough speech we've been waiting for and everybody gets nervous. I agree with Martin. It had to be said.
