PM announces softwood deal has been struck
Prime Minister Stephen Harper announced on Thursday the government has come to an agreement with Washington to settle the long-simmering softwood lumber dispute.
"I am pleased to announce today that the United States has accepted Canada's key conditions for the resolution of the softwood lumber dispute. Canada's bargaining position was strong, our position was clear, and this agreement delivers," said Harper in a speech in the House of Commons.
"This is a deal that resolves a long-standing dispute and allows us to move on."
As part of the deal, Harper said the U.S. has agreed to give Canada "unrestricted access" to the American lumber market, under the current market conditions.
"This means no quota, no tariffs," said Harper to the applause of his MPs.
Harper said the U.S. has also agreed to return at least $4 billion in duties it has collected since 2002 to Canadian producers.
He said the government, tired of the "legal wrangling" in the ongoing dispute, asked the Americans for a long-term solution.
They responded, he said, with "a seven-year deal -- with a possibility of renewal."
Harper said the U.S. has also agreed to:
A return to an exemption in duties for Atlantic lumber producers.
An exemption for Canadian sawmills on the border between Quebec and the U.S.
"Third country provisions" aimed at easing Canadian concerns about other countries gaining U.S. market share at Canada's expense.
Earlier, the prime minister was absent from Commons for the initial part of Thursday's question period; he was reportedly on the phone, furiously lobbying the provinces to accept the proposal.
Harper later announced that he received the support of British Columbia, Ontario and Quebec -- the top lumber producing provinces in the nation.
B.C. Premier Gordon Campbell told reporters in Victoria Thursday afternoon that although the deal isn't perfect, it's a "reasonable" one for Canada, and a "good" one for B.C.
"We think we've crafted a trade agreement that allows for different responses from different parts of the country. This is a fair trade agreement which will provide the stability we want," said Campbell, whose province accounts for more than half of Canada's $10-billion annual lumber exports to the U.S.
Ontario's Natural Resources Minister David Ramsay, who voiced his fierce opposition to an earlier, leaked version of the deal, expressed optimism Thursday.
The deal, as it was proposed on Wednesday, would have resulted in Ontario's share of the country's softwood lumber exports to the U.S. totalling about nine per cent -- below the province's historical share of roughly 10.5 per cent.
This would result in massive layoffs at northern Ontario mills, according to Ramsay.
But he said that after speaking with political colleagues across the country, he became confident a solution can be found that would satisfy Ontario mills.
"There's goodwill in the country to work together," Ramsay said outside the Ontario legislature in Toronto.
"While this arrangement would require each jurisdiction to make some concessions, Ontario got a critical element -- a more reasonable share of softwood exports."
In Quebec, Premier Jean Charest welcomed the agreement, saying it will benefit the Quebec economy which is heavily dependent on the forest sector.
"Throughout these negotiations, the Quebec government defended the province's interests and those of workers in the forestry sector and in outlying regions," Charest said in a statement.
The U.S. Coalition for Fair Lumber Imports, which has waged an aggressive battle against Canadian softwood, has also apparently embraced the agreement.
Prime Minister Stephen Harper announced on Thursday the government has come to an agreement with Washington to settle the long-simmering softwood lumber dispute.
"I am pleased to announce today that the United States has accepted Canada's key conditions for the resolution of the softwood lumber dispute. Canada's bargaining position was strong, our position was clear, and this agreement delivers," said Harper in a speech in the House of Commons.
"This is a deal that resolves a long-standing dispute and allows us to move on."
As part of the deal, Harper said the U.S. has agreed to give Canada "unrestricted access" to the American lumber market, under the current market conditions.
"This means no quota, no tariffs," said Harper to the applause of his MPs.
Harper said the U.S. has also agreed to return at least $4 billion in duties it has collected since 2002 to Canadian producers.
He said the government, tired of the "legal wrangling" in the ongoing dispute, asked the Americans for a long-term solution.
They responded, he said, with "a seven-year deal -- with a possibility of renewal."
Harper said the U.S. has also agreed to:
A return to an exemption in duties for Atlantic lumber producers.
An exemption for Canadian sawmills on the border between Quebec and the U.S.
"Third country provisions" aimed at easing Canadian concerns about other countries gaining U.S. market share at Canada's expense.
Earlier, the prime minister was absent from Commons for the initial part of Thursday's question period; he was reportedly on the phone, furiously lobbying the provinces to accept the proposal.
Harper later announced that he received the support of British Columbia, Ontario and Quebec -- the top lumber producing provinces in the nation.
B.C. Premier Gordon Campbell told reporters in Victoria Thursday afternoon that although the deal isn't perfect, it's a "reasonable" one for Canada, and a "good" one for B.C.
"We think we've crafted a trade agreement that allows for different responses from different parts of the country. This is a fair trade agreement which will provide the stability we want," said Campbell, whose province accounts for more than half of Canada's $10-billion annual lumber exports to the U.S.
Ontario's Natural Resources Minister David Ramsay, who voiced his fierce opposition to an earlier, leaked version of the deal, expressed optimism Thursday.
The deal, as it was proposed on Wednesday, would have resulted in Ontario's share of the country's softwood lumber exports to the U.S. totalling about nine per cent -- below the province's historical share of roughly 10.5 per cent.
This would result in massive layoffs at northern Ontario mills, according to Ramsay.
But he said that after speaking with political colleagues across the country, he became confident a solution can be found that would satisfy Ontario mills.
"There's goodwill in the country to work together," Ramsay said outside the Ontario legislature in Toronto.
"While this arrangement would require each jurisdiction to make some concessions, Ontario got a critical element -- a more reasonable share of softwood exports."
In Quebec, Premier Jean Charest welcomed the agreement, saying it will benefit the Quebec economy which is heavily dependent on the forest sector.
"Throughout these negotiations, the Quebec government defended the province's interests and those of workers in the forestry sector and in outlying regions," Charest said in a statement.
The U.S. Coalition for Fair Lumber Imports, which has waged an aggressive battle against Canadian softwood, has also apparently embraced the agreement.