To: tejek who wrote (135057 ) 3/29/2001 5:53:05 AM From: stribe30 Respond to of 1574478 Canada gets more U.S. support on softwood In addition to annoying the EU, you're also annoying your largest trading partner and closest ally of all.. fortunately.. it looks like there are some voices of reason in the US.. whether they can counteract the logging interests is another matter of course. ------------------------ VANCOUVER (CP) - Voices on both sides of the Canada-U.S. border warned Wednesday that further restrictions on Canadian softwood lumber imports into the American market would hurt consumers there. In a letter to U.S. President George W. Bush, a group called the Consuming Industries Trade Action Coalition urged his administration to move to free trade in lumber after the Canada-U.S. Softwood Lumber Agreement expires on Saturday. Managed-trade deals such as the lumber agreement ''simply operate to disguise subsidies to American producers that will make new homes and other construction more expensive and hurt many more Americans than they would help,'' writes coalition chairman Jon Jenson. A coalition of U.S. lumber producers plan to file countervailing duty and anti-dumping claims against Canadian exporters, arguing low provincial stumpage rates on Crown timber give them an unfair cost advantage. Three previous attempts to impose countervailing duties on Canadian lumber failed, though Canada compromised on the last two occasions. A 1986 deal slapped on a 15 per cent export tax before the wood left Canada. The 1996 softwood lumber agreement, which expires Saturday, restricted duty-free imports of Canadian lumber. U.S. researchers estimate the five-year deal added about $1,000 (U.S.) to the cost of a new home, cutting 300,000 people out of the market. American lumber producers now want a 40 per cent duty on Canadian imports. ''This is going to put the price of lumber up in the United States dramatically,'' B.C. Forests Minister Gordon Wilson said in Victoria. ''That, of course, works to the interests of the lumber companies.'' British Columbia accounts for about half the lumber sold into the United States, where Canadian softwood has a 35 per cent share of the market. Lumber exports are worth about $10 billion (U.S.) a year to Canada. In his letter to Bush, Jenson said restrictions on Canadian lumber threaten industries dependent on open markets for lumber, including all homebuilders, furniture manufacturers and makers of shelving and other home accessories. ''These industries employ some six million workers - more Americans than are protected by the agreement,'' he writes. The expiring softwood deal suffered from ''extremely dubious legality under international trading rules,'' the letter says. ''The World Trade Organization rightly condemns such gray-area measures as alien to the principles of open markets and trade liberalization.'' Jenson said U.S. trade law is too heavily weighted in favour of producers and doesn't adequately consider the interests of consumers. The fact Canada uses a different system for allocating timber rights on public lands does not make it unfair, he added. ''Canada has a comparative advantage in lumber and consuming industries and America's families have the right to choose the best product at the best price,'' the letter says. ''Instead, today, the homebuilders and the American people are paying the price for protection.'' Despite support for Canada from consumer groups and their political allies in Congress, Wilson said producers here should prepare for a long fight over softwood. ''We will not surrender our timber to U.S. interests and neither are we going to allow the United States to selectively apply free trade,'' he said. ''We're in a battle and it's going to be a tough one.thestar.com