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Strategies & Market Trends : Fascist Oligarchs Attack Cute Cuddly Canadians -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (80)	8/24/2001 3:51:17 PM
From: Snowshoe	Read Replies (1) \| Respond to of 1293

Canada pleased with WTO rulings; 19.3 per cent U.S. duty not yet addressed By LISA SCHLEIN Thursday August 23 3:09 PM EST ca.news.yahoo.com GENEVA (CP) - Canada won two small victories Thursday in its lumber dispute with the United States but the World Trade Organization has yet to deal with the newest flareup, over a 19.3 per cent duty ordered by Washington. The WTO, which regulates international trade, adopted a panel report agreeing that Canada was not subsidizing exports when it limited the shipment of raw logs - or unprocessed lumber - to foreign markets. The United States had argued that such export restraints should be considered a subsidy and subject to a duty to protect the importing country's domestic industry. A senior Canadian official in Geneva said the United States did not like the panel's decision, but did not appeal the adoption of the report. "In this respect, we're very pleased with the outcome because it makes it very clear that export restraints do not confer a countervailing subsidy," the official said. "Canada has restraints on the export of rough logs. The U.S. says this creates a subsidy on lumber. We don't agree. We're not subsidizing. We're happy the panel has supported our contention." In another action Thursday, the WTO's dispute settlement body agreed to establish a panel to examine a Canadian complaint that U.S. domestic law violates Washington's international obligations under the WTO regarding countervailing duty. Canada had asked for such a panel once before and it was turned down because of U.S. objections. When Canada made a second request, establishment of the panel was automatically granted to deal with the dispute. Canada is complaining that Washington violates international trade laws by collecting countervailing duties even after a WTO panel has ruled that it is "not consistent with its WTO obligations." Canada's position is that the United States should stop collecting duties on the day the panel makes its ruling. The United States has brought three countervailing cases against Canada over the last 20 years. In all these cases, the Canadian official said, "the U.S. has never been able to sustain its allegations that we subsidize our exports." The European Union, India, Japan and Chile have asked to be third parties in the panel established Thursday. The Canadian official said "the issue goes beyond softwood lumber and concerns other areas of trade" of interest to these countries. The Canadian official said Thursday's developments were "a positive forward step." However, the official said: "I'm not optimistic that this will end the matter. I fully expect the United States will continue to pursue its protectionist actions vis-a-vis Canada's softwood lumber industry." The Canada-U.S. lumber dispute intensified this month when Washington decided to impose a 19.31 per cent duty on Canadian softwood lumber entering the United States on the allegation that Canada is subsidizing the export. Earlier this week, Canada requested urgent and immediate WTO consultations with the United States on the issue. After 10 days of bilateral consultations, the two countries may continue the talks or request the establishment of a WTO dispute settlement panel. Under a fast-track arrangement, the panel could be established 60 days later and a ruling could be made within six months at the earliest. The Canadian official said Canada will defend its interests. "The United States is basically shooting at everything and anything that moves in the hope they can get something to stick."