Foreign Affairs Discussion Group

[Al-Bert]

How about the neighbors up north...always there to help and defend, yet neglected!

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http://www.globeandmail.com/servlet/GIS.Servlets.HTMLTemplate?tf=tgam/common/FullStory.html&cf=t...
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Softwood remarks draw anger

Liberals' inept handling of job losses
is insulting to unemployed, Alliance says


By SHAWN MCCARTHY

OTTAWA BUREAU CHIEF

Saturday, May 4, 2002 – Print Edition, Page A4


The Liberal government has sparked an outcry across the country for suggesting that no one has been hurt by the imposition of U.S. tariffs on softwood exports.

"Our company alone has had 2,000 people laid off, mostly because of the softwood lumber duty," said Rick Doman, chief executive of Doman Industries Ltd. in British Columbia.

Trade Minister Pierre Pettigrew and other Liberal ministers have said that there have been no direct job losses linked to the tariffs as yet. Prime Minister Jean Chrétien added fuel to the fire when he joked at a Montreal fundraiser this week that the tariffs were retribution for Canada's Olympic hockey win over the United States.

While his quip drew a laugh from the Liberal audience, others were not amused.

Canadian Alliance interim leader John Reynolds slammed the Liberals for failing to respond to the looming crisis and playing down its impact.

"It is insulting to every unemployed Canadian, their families, their children. This is a very serious issue and this government just doesn't seem to want to take it seriously," he said.

British Columbia Forest Minister Mike de Jong suggested that Mr. Pettigrew's comments could threaten the unified approach provinces such as British Columbia and Quebec have taken in dealing with the Canada-U.S. softwood dispute.

In Vancouver yesterday, Mr. de Jong said British Columbia stuck with Ottawa's approach on the assumption that if talks failed the federal government would be there to support people and communities hit by the duties.

"I don't think we as a country should be waiting until the last minute," he said. "I think workers, some of whom have been without paycheques for many, many months now, need to know that if these tariffs are being collected on May 23, that there is a package there for them. The time for action is now."

However, Mr. de Jong added that he remains confident the Liberal government does appreciate the gravity of the situation for communities that rely on lumber exports.

Meanwhile, Canadian companies are launching their own challenge to the U.S. countervail duties, in tandem with federal challenges at the World Trade Organization and under the North American free-trade agreement.

Doman Industries has launched a $513-million lawsuit under NAFTA to recover damages it claims to have suffered as a result of the duties. As well, Quebec forestry giant Tembec Inc. signalled its intent yesterday to file a similar $200-million lawsuit claiming that U.S. duties on Canadian lumber are a violation of several provisions in NAFTA.

In Ottawa, Human Resources Minister Jane Stewart said her department is "monitoring" the situation to determine whether the employment-insurance system needs to be adjusted to assist laid-off workers.

Environment Minister David Anderson, a senior B.C. minister, insisted yesterday that the Liberal government continues to look at ways to assist those who will be hurt by the duties.

But he said that not every job loss in the industry is related to the duties. In fact, he said, export volumes remain fairly high to the United States, as companies look to ship lumber into the United States before the duties take effect May 23. "There is a major restructuring going on in the Canadian industry. There are some companies in difficulty for reasons totally unconnected to the trade with the United States," Mr. Anderson said.

"So I think it is true to say that the problem has not yet hit in the way it is going to hit in the next few months if the countervail does result in a dramatic reduction in Canadian exports to the United States."

Paul Cellucci, the U.S. ambassador, played down talk of a trade war, saying problems with softwood lumber and agriculture amount to isolated cases in a much bigger and friendly relationship.

"We're not looking for a trade war -- we're looking to expand trade," Mr. Cellucci told CBC TV.

"When you have a trading relationship that is as big as ours, there are going to be bumps in the road at certain times."