Sunday, September 30, 2007

Softwood Sell Out

Say it ain't so...

In its rush to smooth relations with the U.S. government, Canada's newly elected Conservative government sold out the country's forestry industry when it signed the softwood-lumber agreement, even though legal victory in the long-festering dispute was only months away, a leading softwood lawyer contends in a blistering new commentary.

"The [Canadian] government didn't care about lumber," said Elliot Feldman, a Washington, D.C., lawyer who represented Ontario's forest industries before the softwood agreement was made last April. "The government cared about its foreign-policy agenda with the United States and wanted to clear this out of the way. That's all that mattered."

In his paper, to be published in a coming issue of the Journal of International Trade Law and Regulation, he details how Canada abandoned a round of litigation whose "end was more than in sight. It was imminent."

Had Canada stuck with the various cases underway, it would have seen, at worst, all but 2.11% of the U.S. duty stricken by August, 2006, and the already-collected duties -- a total of about US$5.5-billion, including interest -- returned by November, 2006, he argued.

Instead, he said, the Canadian government agreed to allow the U.S. industry to hold on to $1-billion of the duties -- $4.4-billion was repatriated -- and create a regime in which Canadian lumber exporters now face a punishing export tax and quotas that have further crippled profits already hamstrung by 15-year-low lumber prices and the soaring loonie.

And that one billion allegedly went into Republican election coffers via the White House.

The bribe failed and the U.S. government is again taking Canada to the international court of arbitration over the new agreement. Using that one billion to pay for it.

One of the provinces named in the suit is Alberta, Harpers home base. And in fact Alberta producers have not benefited from the softwood deal. The irony would be delicious if it wasn't pathetic.

Beaten down by poor markets, low prices, dollar parity, continuing disputes with the U.S. over softwood lumber and the mountain pine beetle, Morton said the forestry sector is in "the perfect storm" of economic woe.
How bad is the softwood deal for the rest of Canada's producers? It too is part of a perfect storm.

One of Canada's biggest lumber exporters, Tembec Inc. (TSX: TBC), has temporarily pulled all its lumber from sale in North America because of falling prices and the surging Canadian dollar. In addition, Canadian lumber faces an export tax when it crosses the border into the United States, a measure imposed a year ago by the Canadian government to settle a longstanding softwood lumber dispute with the United States.



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Taliban Karzai

Well, well, once again it appears that the NDP has had the right policy towards Afghanistan all along.
Afghan President Hamid Karzai has offered to meet personally with Taliban leader Mullah Omar and another top insurgent for peace talks.

Something Karzai would have told Parliament if his speech had not been ghost written for him by the Department of Defense. They took particular pains to single out the NDP for criticism in support of their Kandahar operations.

He also took direct aim at NDP Leader Jack Layton's opposition to the war, saying that those who believe the mission was weighted too heavily toward combat and not enough toward reconstruction were wrong.
And while Peter Mackay's office denies it the facts at the time bear it out. Because Layton met Karzai and they discussed peace talks.

The irony is that while Jack promotes peace talks, and is blasted for it being called Taliban Jack, Harper actually has hung out with Warlords connected to the Taliban.

One Blogging Tory tries to spin the bad news this way;

The Difference Between NDP Surrender & Afhganistan Democracy

Once again providing disinformation by generalization; that the NDP is calling for withdrawal from Afghanistan. Which it isn't. Its calling for withdrawal from Kandahar with reduced forces stationed in Kabul doing peace keeping.

And actually would it be any different in Afghanistan if the Taliban were part of parliament? He asked tongue in cheek.

A woman casts her ballot © Joint Electoral Management Body Secretariat/Marie Frechon
A woman casts her ballot in Afghanistan’s
September 18, 2005, election, for which
Canada provided support.

Afghan voters elected the members
of the Wolesi Jirga (lower chamber
of the National Assembly) and
representatives of 34 provincial councils.



Also See:

NDP

Afghanistan


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Job Protection for


Canadian Reservists



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