Softwood Lumber Dispute

[LeftCoast]

RE: Softwood Lumber Dispu

The interesting thing about this whole dispute is that the US strategy is really high risk. From the beginning they have planned a war of attrition in which Canada - regardless of the righteousness of our position - is forced to negotiate a new deal on US terms.

This waiting game has been a very strong hand for the US in the past, but this time it is going to really bite them. Up to a certain point, the Canadian lumber industry was willing to negotiate a less than satisfactory deal, but the US insisted on crippling quotas that the Canadian industry simply could not accept. The tariffs really hurt for a couple of years, but the industry adapted, became more efficient, and now, it is profitable even with the tariffs.

Now that the NAFTA process has run its course, Canada has no incentive to make a deal. But what happens to the US lumber industry if Canada wins?

First of all, if the current 20% tariffs are removed, they will face a flood of cheaper, higher quality lumber. That has to hurt.

Secondly, if the $5B+ collected in tariffs are returned to Canadian lumber companies - many of them will be flush with cash. Some of them will pay dividends to their share holders. Some will use the capital to modernize and upgrade their operations. Some however (likely larger onces such as Canfor) will use the capital to simply acquire their US competitors.

Bummer dude.

 

[Colpy]

Before y'all start trashing Albertans, I would ask you to remember that each Albertan , man, woman or child, donates $3,500 per year to the Feds more than they get back in social programs.

That statement is complete nonsense. The so-called "have-not" provinces get equalization payments that are meant to make it possible for all provinces to enjoy a certain minimum standard of living. Probably most men, women, and children in Alberta know nothing about this system though it's been in place for years. Alberta, B.C., and Ontario, the "have" provinces, give more money to Ottawa in taxes than they get back in services. . People in all provinces pay about the same rate of taxation depending on income. Alberta has relatively high oil revenues that are taxed just like the mining and forest industry in B.C., and the mining and other resources are taxed in Ontario. The federal government gives some of this tax money to the less fortunate provinces in equalization payments.

Sorry guy, it is far from nonsense. Per capita income in Ontario and Alberta are close to the same. Yet Ontario folk pay much less than $1,000 per year per person.

Yes, the Alberta difference is from taxes on their oil and gas. The operative word being "THEIR" oil and gas. Their surplus would have been more, or their rebate much higher, without this money taken out of their economy.

I'm from New Brunswick.

I was just expressing my appreciation.

Is there a problem with that?

 

[Reverend Blair]

:roll:

 

[no1important]

Just heard on Radio US lost latest WTO decision on Softwood lumber.

No links out yet but will post one when one becomes availble.

 

[no1important]

RE: Softwood Lumber Dispu

WTO appeal ruling opens door for Canada to retaliate against U.S. on softwood

A teaser:

VANCOUVER (CP) - The latest World Trade Organization softwood lumber ruling opens the door for Canada to retaliate against the United States, the Department of International Trade said Monday.

Trade officials said the WTO appellate body has upheld Canada's position that U.S. procedures used to establish countervailing duties on Canadian softwood lumber imports are inconsistent with trade organization's rules.

As a result, the department said in a news release, the case now will go to arbitration to determine the amount of retaliation Canada is entitled to in the event the United States does not bring itself into conformity with its WTO obligations. [/teaser]

I think Electricity. Natural Gas and Oil would be the places I would retaliate. It would hit them the hardest.

And a link from CBC

 

[no1important]

U.S. chops Canadian softwood duties in half

A teaser:

The United States will reduce average duties on Canadian softwood lumber to 10.81 per cent, chopping them almost in half.

That new figure, issued by the U.S. Commerce Dept., includes a countervailing duty of 8.7 per cent on lumber imported from all regions except the Maritimes.

Anti-dumping duties will vary, but the average will be 2.11 per cent.

The U.S. is currently penalizing Canadian producers with duties of about 20 per cent.

The new figures are based on a review of Canadian products from the 2003-04 period.

"That's certainly good news," Carl Grenier of the Montreal-based Free Trade Lumber Council told The Canadian Press on Tuesday.

"That will take the monthly bill of $90 million to $100 million and cut it in half. The department is running out of technical ways of keeping the rate up." [/teaser]

Well that is a start, but they have a long way to go and of course they owe us billions still..........

 

[JomZ]

Good, I wonder if American will ever give the Canadian logging industry's money back even being found at wrong by all governing bodies of these trade organizations?

Do the terms:
"When hell freezes over." & "When pigs fly." sound applicable

 

[Jo Canadian]

 

[Jo Canadian]

 

[no1important]

Americans appeal move to chop Cdn. lumber duties

A teaser:

American lumber producers are appealing the U.S. Commerce Department's decision to chop duties on Canadian softwood lumber by almost 50 per cent.

Earlier this month, the department announced it would reduce average duties on Canadian softwood lumber to 10.81 per cent, cutting them almost in half.

Now the U.S. Lumber Coalition is fighting that decision.

The panel under the North American Free Trade Agreement has until Feb. 20 to decide whether it will agree to the coalition's appeal.

Canada has argued the U.S. isn't following proper procedures to determine whether Canadian softwood products are unfairly subsidized and dumped on the U.S. market.

Since 2002, the U.S. has collected $5 billion in penalties from Canadian softwood producers.

Earlier this month, the World Trade Organization issued a ruling that supported Canada's position, saying U.S. methods are inconsistent with international rules. [/end teaser]

Why waste their time? There is nothing to appeal. They should be saving up their money to pay us back the 5 billion they owe.

 

[Calberty]

All that is fine and dandy but what forestry workers need are results. The Martin governmnent has not delivered results.

Who is right and who is wrong,...blah..blah....so what? What counts is results and the Liberals haven't delivered.