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It took Harper only few weeks to do what the Liberals couldn't achieve for years.
It’s over: Softwood deal done
Agreement would appear to end bitter trade war between two countries
Apr. 27, 2006. 06:51 PM
CANADIAN PRESS
A deal endorsed by Canada and the United States to end the decades-long softwood lumber dispute will help all regions of Canada, Prime Minister Stephen Harper said Thursday as he announced the agreement in the Commons.
Harper said Washington met several conditions set by Canada for the seven-year deal, which will refund about $4 billion of duties collected over the last few years but limits Canadian shipments to the U.S. market if U.S. lumber prices begin to fall.
Specifically, the deal helps British Columbia, Canada’s dominant exporter, Quebec’s border sawmills and keeps Atlantic Canadian lumber mills out of the trade fight, Harper said.
“Canada’s bargaining position was strong, our conditions were clear, and this agreement delivers,†the prime minister told the Commons.
“This is what Canada wanted. This is what Canada got. This, colleagues, is a good deal. . . . It helps Canadian companies, communities and workers. The vast majority of Canada’s softwood production have given us their support.â€
In Vancouver, British Columbia announced it has agreed to support the lumber deal.
“On balance, it’s a reasonable deal for Canada and a good deal for British Columbia,†said Premier Gordon Campbell.
“We think we’ve crafted a trade agreement that allows for different responses from different parts of the country. This is a fair trade agreement which will provide the stability we want.â€
Even Ontario, which had opposed an earlier leaked version of the agreement as too restrictive, changed its mind Thursday and came out behind the framework agreement when the province was assured it would get a bigger share of the U.S. market.
“A lot of work went into negotiations that have led to this framework, and we have steadfastly defended Ontario’s interests throughout the process," said Natural Resources Minister David Ramsay.
"While this arrangement would require each jurisdiction to make some concessions, Ontario got a critical element — a more reasonable share of softwood exports."
In the Commons, Liberal Opposition Leader Bill Graham was snide on hearing about the agreement, calling it “a great day — for the American industry.â€
And NDP Leader Jack Layton called it “a sellout . . . it’s really shocking.â€
B.C. support was pivotal because the province accounts for more than half of Canada’s $10-billion annual lumber exports to the U.S. construction and home renovation market.
“Our market share has been protected and for the first time ever we have some ability for our market to grow without penalty,†Campbell said in Victoria.
The framework, which is supposed to form the basis for a final deal, lifts onerous duties on Canadian softwood but caps Canada’s share of the U.S. market and imposes a border tax when prices fall below a certain level where American producers say they can’t compete.
The seven-year deal also leaves about $1 billion of the $5 billion in duties collected by U.S. Customs since May 2002 in American hands, half of it going to U.S. lumber companies whose complaint triggered the duties in the first place.
The announcement came following feverish discussions between the B.C. government and lumber industry officials to amend a framework put forward earlier this week.
Michael Wilson, Canada’s ambassador to Washington, forwarded the modified package to American officials Thursday morning.
Canada has tabled an amended version of the framework after the original deal sparked an outcry.
Sources told The Canadian Press that Michael Wilson, Canada’s ambassador in Washington, came back with a package that changes the point where a border tax kicks in.
It also changes the definition of market share related to the cap on Canada’s slice of the U.S. market and amends the so-called anti-surge rate, which penalizes lumber-producing regions and companies that exceed their quotas under the seven-year deal.
Sources said the changes were aimed at addressing concerns from the Canadian lumber industry about the original framework hammered out Tuesday by Wilson and Deputy U.S. Trade Representative Susan Schwab.
The framework is intended to settle the latest round of a long-standing trade war over Canadian lumber exports to the United States.
American producers have complained for years that Canadian softwood is subsidized through low provincial timber-cutting fees known as stumpage and other forestry policies.
Details of the framework leaked out early this week and International Trade Minister David Emerson, former CEO of B.C. forest giant Canfor Corp. (TSX:CFP), was left to insist that there was no deal — yet.
The surge mechanism, which tacks an extra border charge on regions that exceed 110 per cent of their quota, was thought to be aimed at B.C. Interior mills, the most profitable and efficient, and which would also handle an expected flood of hurriedly logged, beetle-infested timber in the next decade.
It’s over: Softwood deal done
Agreement would appear to end bitter trade war between two countries
Apr. 27, 2006. 06:51 PM
CANADIAN PRESS
A deal endorsed by Canada and the United States to end the decades-long softwood lumber dispute will help all regions of Canada, Prime Minister Stephen Harper said Thursday as he announced the agreement in the Commons.
Harper said Washington met several conditions set by Canada for the seven-year deal, which will refund about $4 billion of duties collected over the last few years but limits Canadian shipments to the U.S. market if U.S. lumber prices begin to fall.
Specifically, the deal helps British Columbia, Canada’s dominant exporter, Quebec’s border sawmills and keeps Atlantic Canadian lumber mills out of the trade fight, Harper said.
“Canada’s bargaining position was strong, our conditions were clear, and this agreement delivers,†the prime minister told the Commons.
“This is what Canada wanted. This is what Canada got. This, colleagues, is a good deal. . . . It helps Canadian companies, communities and workers. The vast majority of Canada’s softwood production have given us their support.â€
In Vancouver, British Columbia announced it has agreed to support the lumber deal.
“On balance, it’s a reasonable deal for Canada and a good deal for British Columbia,†said Premier Gordon Campbell.
“We think we’ve crafted a trade agreement that allows for different responses from different parts of the country. This is a fair trade agreement which will provide the stability we want.â€
Even Ontario, which had opposed an earlier leaked version of the agreement as too restrictive, changed its mind Thursday and came out behind the framework agreement when the province was assured it would get a bigger share of the U.S. market.
“A lot of work went into negotiations that have led to this framework, and we have steadfastly defended Ontario’s interests throughout the process," said Natural Resources Minister David Ramsay.
"While this arrangement would require each jurisdiction to make some concessions, Ontario got a critical element — a more reasonable share of softwood exports."
In the Commons, Liberal Opposition Leader Bill Graham was snide on hearing about the agreement, calling it “a great day — for the American industry.â€
And NDP Leader Jack Layton called it “a sellout . . . it’s really shocking.â€
B.C. support was pivotal because the province accounts for more than half of Canada’s $10-billion annual lumber exports to the U.S. construction and home renovation market.
“Our market share has been protected and for the first time ever we have some ability for our market to grow without penalty,†Campbell said in Victoria.
The framework, which is supposed to form the basis for a final deal, lifts onerous duties on Canadian softwood but caps Canada’s share of the U.S. market and imposes a border tax when prices fall below a certain level where American producers say they can’t compete.
The seven-year deal also leaves about $1 billion of the $5 billion in duties collected by U.S. Customs since May 2002 in American hands, half of it going to U.S. lumber companies whose complaint triggered the duties in the first place.
The announcement came following feverish discussions between the B.C. government and lumber industry officials to amend a framework put forward earlier this week.
Michael Wilson, Canada’s ambassador to Washington, forwarded the modified package to American officials Thursday morning.
Canada has tabled an amended version of the framework after the original deal sparked an outcry.
Sources told The Canadian Press that Michael Wilson, Canada’s ambassador in Washington, came back with a package that changes the point where a border tax kicks in.
It also changes the definition of market share related to the cap on Canada’s slice of the U.S. market and amends the so-called anti-surge rate, which penalizes lumber-producing regions and companies that exceed their quotas under the seven-year deal.
Sources said the changes were aimed at addressing concerns from the Canadian lumber industry about the original framework hammered out Tuesday by Wilson and Deputy U.S. Trade Representative Susan Schwab.
The framework is intended to settle the latest round of a long-standing trade war over Canadian lumber exports to the United States.
American producers have complained for years that Canadian softwood is subsidized through low provincial timber-cutting fees known as stumpage and other forestry policies.
Details of the framework leaked out early this week and International Trade Minister David Emerson, former CEO of B.C. forest giant Canfor Corp. (TSX:CFP), was left to insist that there was no deal — yet.
The surge mechanism, which tacks an extra border charge on regions that exceed 110 per cent of their quota, was thought to be aimed at B.C. Interior mills, the most profitable and efficient, and which would also handle an expected flood of hurriedly logged, beetle-infested timber in the next decade.