Softwood Lumber

Let the tarrif wars begin. Scrap NAFTA (and CAFTA as well)

 

Where do I enlist!

$5 billion...is that US dollars or the stuff with the queen on it;-)

 

Without a link for some background to that of which you are referring, and not being a subject matter expert, I’d have to say,
“I duno.†:|

 

Here is the quick version.

A consortium of softwood lumber producers centred in the US southwest alleged over five years ago that Canada subsidized softwood lumber production by not charging enough for trees.

(In the US, lumber is largely produced from trees on privately owned land or from trees auctioned by government. In Canada, lumber largely comes from trees on government owned land. Government would estimate the value of the forest and sell the cutting rights to companies.)

The US government imposed a duty on Canadian softwood. Canada appealed to NAFTA panels and WTO panels. These bodies have endorsed Canada's position that there is no subsidization.

The US Commerce department continues to ignore decisions and continues to charge the duties. US lumber producers are now demanding that the US government give THEM the $5B in duties that have been charged. They threaten that they will now challenge NAFTA as being a violation of the US constitution and therefore any decisions of NAFTA panels are illegal.

This would, of course, bring free-trade agreements by any country with the US to a screeching halt.

 

Sorry, make that southeast, not southwest.

 

also this last decision of the WTO is the 5th one that has come against the US on Softwood Tarrifs. Maybe it's time for a surcharge on Natural Gas exports to the US to recoup the 5 Billion. Say $12-$14 a gigajoule. Maybe if the average American saw his/her gas bill to heat their home go up 20% he/her might investige the decisions made by the WTO and get a hold of their congressman and complain.