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| Canada scraps softwood lumber talks with U.S |
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2005/8/19
Canada said on Tuesday it would scrap next week's lumber-dispute talks with the United States to express its outrage over Washington's refusal to eliminate duties on Canadian softwood, despite a trade panel ruling that found the duties unjustified.
Ratcheting up trade tensions, the frustrated Canadian government sought to grab the attention of the United States even if it meant putting off talks designed to get rid of tariffs the Canadian government has been fighting.
"Following consultations with provincial governments, and in light of the U.S. response to the August 10 decision of the NAFTA Extraordinary Challenge Committee, the government of Canada has decided to not proceed with the negotiations planned for next week," Trade Minister Jim Peterson said in a statement.
The North American Free Trade Agreement committee had rejected a U.S. appeal of a ruling that said Washington had failed to justify imposing duties on imports of Canadian softwood, used in building and remodeling homes.
The United States, which has maintained Canada unfairly subsidizes softwood exports, said the decision referred only to a 2002 claim but had no bearing on a newer claim it made in November 2004.
This angered Canada, which had been gearing up for next week's talks in Ottawa. The discussions have been held every two to three months with the aim of arriving at a negotiated settlement while legal challenges grind on.
"The government of Canada will continue to consult with industry stakeholders as we consider all possible options for promoting Canada's interests in this long-standing dispute. I will take the necessary time to consult with provincial and cabinet colleagues on next steps," Peterson said.
He conveyed his decision to U.S. Trade Representative Rob Portman (news, bio, voting record) and said he appreciated "our open dialogue."
But a Canadian official said talks would remain suspended until Canada decides it is in its best interests to return to the table. Meantime, the duties remain.
Rich Coleman -- forests minister for British Columbia, Canada's largest producer -- told a radio interviewer that Ottawa was looking for a "good faith gesture" to show that Washington was committed to honoring trade agreements.
In its reaction, the U.S. side immediately affirmed its commitment to trade deals.
"As Ambassador Portman has made clear, the United States respects the NAFTA process. U.S. policy continues to be that we comply with our trade obligations under the NAFTA and our other trade agreements," USTR spokeswoman Neena Moorjani said.
"We are disappointed the meeting has been canceled and hope talks can resume shortly."
The U.S. lumber industry said it was disappointed that next week's talks were canceled but held out hope negotiations could get back on track.
Barry Cullen, executive director of the Coalition for Fair Lumber Imports, a U.S. industry lobby group that sought the duties on Canadian lumber in 2001, said he did not think Ottawa had closed the door to rescheduling negotiations.
He added that the disruption could be due, at least in part, to internal disagreements among Canadians on how talks should proceed. "I'm kind of reading it as if they've probably had some problems up there too," Cullen said.
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| Source:www.wood365.com |
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