RE: Softwodd Lumber Dispu
WINNIPEG (Reuters) - The United States and Canada engaged in verbal sparring over their softwood lumber trade dispute on Friday but both sides appeared to recognize the difficulty of tit-for-tat retaliation.
U.S. Ambassador David Wilkins raised the ire of Canadian cabinet ministers by urging in remarks published on Friday in the Ottawa Citizen that Canadian leaders should stop their "emotional tirades" and get back to negotiating.
Canadian Industry Minister David Emerson, a former forestry executive, accused him of hypocrisy and said the United States was acting like a bully.
It all stems from an August 10 decision against the United States under the North American Free Trade Agreement (NAFTA), which Ottawa says demands an end to U.S. softwood duties.
Washington counters that the NAFTA ruling concerned a 2002 finding and that a subsequent trade body's finding in 2004 still allows duties on Canadian lumber. It says both NAFTA and the World Trade Organization (WTO) recognize that Canadian softwood, used in building houses, is subsidized.
"Emotional press conferences are not going to settle the issue," Wilkins was quoted as saying. "Canada needs to come back to the table. We need to close the door, roll up our sleeves and negotiate as need be, with good faith, and bring finality to it."
Speaking before a scheduled cabinet meeting, Emerson countered: "I respect Ambassador Wilkins but find his response a little hypocritical. We've been negotiating. I've been involved in negotiations for five years."
Referring to a toss of the coin, he said the American attitude seems to be, "Heads they win, tails we lose."
Upon seeing the U.S. response to the August 10 NAFTA decision, Canadian International Trade Minister Peterson had canceled negotiations which had been set for Ottawa last week, but he said on Friday he was open to a long-term resolution.
However, Peterson said: "I think the message the ambassador should be delivering to Washington is that they should not confuse emotion with commitment and determination by Canadians to ensure that the NAFTA is respected."
He added: "The rule of law must be respected, and that does not involve trade wars. It involves honoring decisions of NAFTA panels."
With both ministers having talked about possible retaliation, Wilkins said in his remarks that a trade war was in nobody's interest, especially with Canada running a large trade surplus with the United States.
Though Emerson has rattled the saber the loudest, he also voiced frustration with an unwillingness within Canada to endure the pain that retaliation sometimes entails.
"Every time we get into a discussion about what Canada can do to retaliate, as soon as you name a sector or a particular target of retaliation, the divisions -- the regional divisions, the sector divisions -- spring up in Canada," he said.
"Candidly, Canadians have to decide as a small trading economy, are we going to stand together, are we going to unite, are we going to be stronger than the sum of our parts, or are we going to be endlessly bickering amongst ourselves and allowing the bully to basically mop the floor with us."
Wilkins says the two sides could for starters discuss the implications of the latest ruling.
*** Sorry I had to print whole article as for some reason link would not work from Reuters end, it just went to no such story page :scratch: ***