Wednesday, April 4, 2007

Softwood Lumber already?

Oh, oh get out the K-Y jelly the Americans are unhappy with the softwood lumber agreement again. International Trade Minister, party jumper and chief bender over for the Canadian govt David Emerson announced late Friday that "The United States has requested that we consult on federal and provincial government forestry programs and the interpretation of the surge mechanism." In other words the Americans have a problem with assistance programs offered by the Ontario and Quebec governments to the Canadian lumber industry saying it amounts to subsidies. (That old chestnut.) They also object to federal grants, loans, loan guarantees, and tax credits awarded to Canadian lumber producers. Lastly, (for now) they have a problem with our interpretation of the surge mechanism which is essentially a taxation and duty scheme that ties the tax rates paid on Canadian lumber exports to US lumber consumption. They don't have a leg to stand on on any of the above counts but when has that stopped them before? Why would it? Emerson seems quite ready to bend over already saying, "This is a good opportunity for Canada and the United States to once again work closely and to work through our disagreements in a constructive manner." Translation, thank you sir may I have another? The Softwood Lumber deal, made law less then six months ago was already hugely one-sided and essentially rewarded the Americans for breaking the rules of NAFTA. Emerson pretty much admitted as much at that time saying that the deal wasn't ideal but that is was a better alternative to costly litigation and that it would bring "stability to the industry." What stability? Less then six months and the Americans are complaining. These, "consultations" are the second step in the grievance process and amount to nothing more then a shake down. Canada will either capitulate, (don't put it past Emerson) or the next step will be guess what, litigation. We'll be right back where we started from accept with less of a legal leg to stand on. In the Softwood lumber Agreement we negotiated away our rights to use all legal rulings in our favour in the past in any future legal proceeding. More great negotiating. Conservatives shouldn't be allowed to make deals with Americans. They love them so much and want to be them so bad that they essentially give away the farm every time they meet. Each time David Emerson or Micheal Wilson make a deal with the US my bum feels sore. Jesus I think these guys were the negotiating team for the Manhattan Indians. One billion dollars bought us less then six months of lumber peace . It is exactly what critics of the deal said would happen and it would be funny if it wasn't so sad.