To: Scumbria who wrote (134546 ) 3/14/2001 9:56:20 AM From: stribe30 Read Replies (1) | Respond to of 1573150 Apparently our PM knows who the real welder of power is in Washington Chretien, Cheney seek lumber deal Softwood deadline near Robert Fife, Ottawa Bureau Chief National Post OTTAWA - Jean Chrétien and Dick Cheney have held talks in an effort to head off a trade war over softwood lumber and to push negotiations on a continental energy accord. The Prime Minister telephoned the U.S. Vice-President on Friday to ask him to consider Canada's request to appoint special envoys to examine the dispute over softwood lumber that threatens to turn into an all-out trade war. A 1996 softwood agreement expires at the end of the month and the Bush administration is backing the U.S. forest industry's effort to hit Canadian lumber with countervailing and anti-dumping duties that could cost the industry $1-billion a year. Bob Rae, the former Ontario premier who is acting for the Canadian-based Free Trade Lumber Council, said the Prime Minister made a strong case for appointing the special envoys. Mr. Rae said the envoys would try to sort out U.S. misconceptions about timber pricing by the four major lumber-producing provinces -- British Columbia, Alberta, Ontario and Quebec. "The substance of the conversations were about the envoy process and making sure that can get done," he said. "We would like to get a constructive dialogue going that is fact-based, that is not just a series of emotional charges coming across the border." Mr. Rae said the Prime Minister did not persuade Mr. Cheney to initiate the envoy process, but the Vice-President, who wields enormous influence in Washington, promised to consider the idea. "I don't have a sense of that," Mr. Rae said when asked whether Mr. Cheney was favourable to Mr. Chrétien's suggestion. "I think they are still reflecting on that, but we are hoping we can move it along." The American industry, which has been shaken by falling North American lumber prices, has asked the Bush administration to investigate Canadian timber pricing and accusations it is illegally dumping lumber in the U.S. market. While the lengthy investigation takes place, the U.S. could impose heavy duties on Canadian lumber by early summer. Canada, which has the support of a U.S. consumer coalition, has been pushing Washington to allow Canadian lumber to come into the country duty-free under the free trade agreement. Washington wants Canada to impose a voluntary export tax of at least 20%. Marianne Goodwin, the Prime Minister's press secretary, said Mr. Chrétien and Mr. Cheney also discussed the creation of a common market on energy during the 15-minute conversation. A continental energy accord will be the subject of three-way talks between Mr. Chrétien, Mr. Bush and Vicente Fox, the Mexican President, after the Summit of the Americas ends on April 22.nationalpost.com