To: unclewest who wrote (11546 ) 11/25/2001 6:00:47 PM From: axial Respond to of 281500 Hi, unc - The US/Canada software lumber problems have proven to be extremely difficult. In Canada, by far the majority of lumber-producing land is Crown land. However, in the Maritimes, in particular, where more land is in private ownership, the impact of recent duties has ben less severe. The United States has refused to accept a string of decisions in Canada's favor on this matter, so the latest American actions strike many Canadians as punitive. They ask, with some reason, "What is the point of these mechanisms if nobody will abide by the decisions?" Nevertheless, the matter will be reviewed again. The questions of the cost of the land on which the wood grows (ie., Crown vs. private, Crown vs. corporate, Crown vs. Federal), and the accounting methods that incorporate those costs into the final price of the lumber are a source of considerable scepticism, on both sides of the issue. It is difficult to overstate the impact this dispute has had in Canada: it has had an immediate effect on tens of thousands of jobs, and a residual effect on hundreds of thousands of jobs. Some have estimated the damage to be the equivalent of 5 million jobs in the States. Others state the equivalency as closer to 2 million (using a proportioning multiple of 10, a traditional finger-in-the-wind way of comparing our countries). It is evident that American claims of economic hardship have something behind them. Canadian claims are equally disturbing. Many have thrown more heat, than light on the matter; reactions of outrage, and anger are the norm. Unfortunately, they contribute little, to knowledge or understanding. Months ago, the question of the impact of higher lumber prices on new housing, and the economy was noted on both sides of the debate. It is generally agreed that this is the wrong time for such an increase. OTOH, at some time, in some way, the matter has to be definitively addressed, and taken off the table. It is a recurring irritant which is poisoning our relationship. Canada and the United States have surmounted larger obstacles than this. I have some hope for resolution of the problem. One thing's for sure: failure to find an answer has terrible implications for Free Trade, and the reduction of protectionism. Some have suggested that is what's driving this, and that the Softwood Lumber dispute is "the thin edge of the wedge" designed to dismantle NAFTA. Who knows? Regards, Jim