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Cdn. lumber industry cracks as U.S. pushes for deal by tomorrow 
2006/5/31

VANCOUVER (CP) The solidarity of the Canadian lumber industry, fragile at the best of times, cracked yesterday as talks in Washington to resolve the softwood dispute with the United States pushed towards tomorrow's deadline.

The Montreal-based Free Trade Lumber Council attacked talks aimed at producing a framework for a settlement, saying yesterday the terms undercut gains Canada has made in years of trade litigation and jeopardizes the future of the Canadian lumber industry.

Council executive vice-president Carl Grenier said Washington appears to be exploiting the new Conservative government's desire for better Canada-U.S. relations.

"They're testing the Canadian government's resolve to improve the relationship," he said in an interview.

The U.S. government is also pushing for a deal by tomorrow, the last day it can file a final challenge against a NAFTA ruling that orders an end to countervailing duties against Canadian lumber imports, said Grenier.

Details of the proposed framework that began leaking out Monday include an effective cap on Canada's share of the U.S. lumber market and a border tax on future exports keyed to market share, lumber prices and the exchange rate between the Canadian and U.S. dollar.
Source:ttp://www.vivelecanada.ca  
 
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