To: marcos who wrote (537 ) 9/3/2002 5:09:18 PM From: E. Charters Read Replies (2) | Respond to of 1293 In 2000, forest products contributed $20.8 billion to gross domestic product. Canadian forest products are exported to more than 100 countries around the world. The value of forest products shipments in 2000 reached $71.1 billion, and exports totalled $49.9 billion.
Canada is the world's leading exporter of forest products; it accounts for 21% of world trade. This sector contributed the largest amount, some $40.4 billion, to Canada's trade surplus balance in 2000. Major export markets include the United States (which accounted for 77% of Canadian forest products exports), the European Union (8%) and Japan (7%).
So we export $49.1 billion in trees and 77% of that goes to the Hew Hess Hay. Which is $37.8 billion. The slap a tax of 27.2 per cent on that -- and that is a 10.3 billion dollar tariff. So correct me if I am wrong, but that is what they think we should be paying our government in stumpage -- $10.3 billion more than we do now? They gotta be kidding. Nobody pays those kind of fees for trees anywhere. That amounts to about an across the board 14.5% surcharge on total end user production value for stumpage alone! Since the logger at the low end (33% of the cost) of the product markup, who pays the stumpage, it is the equivalent of his paying 50% over his total normal receipts for product as a stumpage fee! Even if normal stumpage were increased 5 fold, on the cheap trees like Hemlock, there is no way it would come to that kind of value. The idea that Canada subsidizes logging to that extent is ludicrous. It is like saying BC logging costs are say, 35 dollars a cord and US logging costs are 100 dollars a cord. The true costs including stumpage are not that far apart in Canada and the US. (The effective wood harvest in the States is nearly double the amount of fibre per acre. US clearcut yields are 98% of grown fibre where BC clearcut is a 48% harvest so their costs are way down per cord on many fixed items ) To compare logging costs and government costs for a single railline, arctic country with 30 million people is trying to say an orange and an apple are peeled in the same way and you can't taste the difference with a blindfold on. It is high time the Mericans grew up, or we smartened up concerning "free" trade. If "free" trade means 27% tariff on our most important export industries, and they get to dictate our regulations, then it is time to opt out of this whole scheme before we lose the country.Now remember our stumpage fees did not get dropped yesterday. Tbey didn't bother anyone 22 years ago, when there was no free trade. This is all since the Mericans have been able to get their legal hooks into us with the "free" trade regulations. If we add up the jobs we will lose in forestry, the jobs we have lost in mining, and the jobs we will lose in the Auto industry we hade better put them on a gravestone, because we ain't gettin em back. Let's count. 1. GM -- 50,000 jobs are gone or will go. 2. Ford -- 50,000 jobs gone and about 20,000 more will go in 2-3 years. 3. Softwood lumber.-- 50,000 jobs in 6 months. I would say another 50,000 in 3 to 4 years. 4. Mining (over 25 years) We lost 250 mines minimum. We failed to start another 100 because of policy. That is 75,000 jobs including services to mining. 5. Kyoto ratificaton 100,000 jobs minimum. 6. New tailings regs federally -- 10,000 jobs. That is 385,000 jobs lost forever. 1.2 million people with less outlook, and much poorer. The spin off of those lost jobs affects 2.5 million people with lesser income due to less money being spent. Can we afford this? Where is the replacement industry? Ans: There is none. You cannot have industry without something to sell and somewhere to sell the product. Who is responsible? Ans: Quebec and other lawyer socialists. Mulroney and Chretien architected the submission to "free" trade. Trudeau, and Chretien started the dismantling of the Canadian mining industry way back in 1968 with the whole hearted support of the NDP in Saskatchewan and BC. Ontario followed suit under the liberals, NDP and sad to say, Harris' conserfvatives. Solution? Don't vote for a lawyer. Don't vote for anyone unless he will look you in the eye and say he will not dismantle industry in the country due to a service economy philosophy. Don't fool yourself. Germany, the US and Japan are manufacturing and resource harvesting nations. They are not service economies. They make stuff and mine it or cut it, albeit overseas for the most part. Canada cannot at present afford to become a nation of government clerks and forget how to make a bicycle. And let's opt out of that damn yankee plan, free trade. It is getting us nowhere but unemployed. We should charge a tariff of 500 dollars a copy for Microsoft Office and kick the US car manufacturer out of the country before they leave, and make our own. (Why? because we don't sell them any autos anyway. They make the cars up here and sell them back to us! We need this?) Anyway, if the need our wood, let them pay a higher price. Who cares? China will buy all we can sell them if the yanks want to play hard ball. EC<:-}