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bitwhys
Joined: 19 Nov 2004 Posts: 649
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Posted: Fri Aug 12, 2005 7:16 pm Post subject: US shows its a class act again... NOT! |
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The US were the ones to put an end to Reciprocity last time.
Our turn?
what with price of oil what it is, could be the perfect time
bunch of whiners
[size=18]U.S. poised for trade war[/size]
Washington refuses order to refund $5B Canadian duties
Paul Vieira and Drew Hasselback; with files from JasonKirby in Toronto
National Post
August 11, 2005
Canadian lumber producers say they expect Ottawa to act decisively if the United States ignores the NAFTA ruling.
OTTAWA and TORONTO - Washington says it has no plans to obey a NAFTA ruling that compels the United States to refund an estimated $5-billion in illegally collected duties to Canadian lumber producers -- setting up a potential trade war that experts say could threaten the future of the North American trading bloc.
Moreover, the judgment has prompted the U.S. lumber industry to launch a legal challenge of NAFTA's authority to resolve trade disputes involving the United States.
In response, Canadian trade officials said Ottawa will pursue all legal options available, and possible retaliatory trade measures such as duties on U.S. imported goods, to force Washington's hand and get the $5-billion back into Canadian hands.
Last November, Canada, in fact, served notice it was prepared to slap duties that would effectively double the price of such U.S. exports coming into Canada as newsprint and wood products, seafood and some agricultural products.
Yesterday's decision winds up just one of several legal softwood trade disputes between Canada and the United States. But this time, the stakes are different because it was the final court of appeal under the NAFTA trade dispute process that delivered the judgment.
"This is a big win for Canadians," said Jim Peterson, the International Trade Minister. "But let me be frank with you, we're not out of the woods yet."
Panelists on the NAFTA-administered quasijudicial body ruled unanimously there is no justification for Washington to impose a 27% levy on Canadian lumber imports. The ruling forces the United States to distribute the roughly $5-billion in duties collected to date to Canadian lumber companies.
But a spokeswoman for the office of the U.S. trade representative, Rob Portman, said Washington has no plans to do such a thing. Neena Moorjani said the U.S. administration was "disappointed with the decision, but it will have no impact on the antidumping and countervailing [duties]" collected to date. She added: "We continue to have concerns about Canadian pricing and forestry practices."
This initial response from Washington has trade experts issuing warning flags.
"What does this mean for NAFTA when the United States thinks none of the legally binding rulings apply?" asked Lawrence Herman, a trade lawyer based in Toronto.
Christine Mingie, a Vancouver lawyer and expert in commercial law, said Washington's refusal to abide by the judgment has widespread repercussions.
"That would have huge implications, not just on softwood lumber but on any other trade disputes Canada may have," she said.
"In terms of the United States complying with any other international agreement, this raises big question marks as well. If they are not going to comply with this, then it is a huge issue in dealing with the Americans."
Mr. Peterson said he expects the United States to comply with the ruling and to distribute the $5-billion it has unlawfully collected to date.
"The U.S. is a free trader," he told reporters in Toronto. "The U.S. understands the need to respect international obligations and knows that the world is watching, both as it goes out and negotiates bilateral treaties and also participates in its role of leadership in the WTO."
Representatives for Canadian lumber producers said they expect Ottawa to act decisively if the United States ignores the NAFTA ruling.
"If the United States tries to do something else, we hope Canada will respond very strongly to any attempt of not conforming to this decision," said Carl Grenier, executive vice-president of the Free Trade Lumber Council, a 72-member organization.
"I'm extremely disappointed to see a statement saying nothing has changed, that the duty orders will stay in place," added John Allan, head of the British Columbia Lumber Trade Council. "To me that's the U.S. government hanging on by a very slim thread. We will have to go to court to get legal support for our victory in the trade dispute mechanism."
In a technical briefing for reporters, Canadian trade officials said they had filed legal documents with the World Trade Organization and other trade bodies in anticipation that the United States would ignore yesterday's ruling. These legal measures are meant to compel the U.S. to refund the $5-billion in duties. Mr. Peterson added Canada has an application before the WTO to impose its own duties on U.S. goods.
Besides the U.S. administration, Canada will need to keep tabs on legal action by the U.S. Coalition for Fair Lumber Imports. In a statement, the coalition said it has instructed lawyers to challenge NAFTA's dispute resolution process, which it describes as "constitutionally defective." Such a challenge could tie up the issue in U.S. federal courts for several years.
Part of the arguments, experts say, will be that lay people sit on these quasi-judicial trade panels, as opposed to judges appointed by Washington.
Ms. Mingie said the constitutional challenge could attract a groundswell of support among U.S. voters, already skeptical of a recent trade deal with Central America and concerned about Chinese imports flooding the country.
She added Canada has a lot at stake because it pushed hard for an independent trade resolution process during negotiations in the late 1980s and early 1990s. It preferred this option as opposed to having cases dealt with in U.S. courts, which are often biased.
(I don't usually use the Harper Choirboy Review but this article is just too sweet to keep to myself)
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ans
Joined: 15 Feb 2005 Posts: 441
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bitwhys
Joined: 19 Nov 2004 Posts: 649
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Posted: Sat Aug 13, 2005 1:42 pm Post subject: Re: re |
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what is sweet about it is that it sounds the death knell for NAFTA unless the Americans decide to behave themselves.
Given the price of oil these days that 100% fine with me.
tick
tick
tick
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ans
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Posted: Sat Aug 13, 2005 2:49 pm Post subject: Not all Americans agree |
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"We are, of course, disappointed with the (panel's) decision, but it will have no impact on the anti-dumping and countervailing duty orders," said Neena Moorjani, press secretary for the U.S. Trade Representative, Rob Portman.
The U.S. Coalition for Fair Lumber Imports, representing the American industry, denounced the NAFTA process and said it will continue to fight what it claims are unfair Canadian subsidies.
Not all Americans agree. A U.S. homeowners lobby called on the administration of U.S.
President George W. Bush to "do the honourable thing" and drop the softwood war.
ticking down til 8/22
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bitwhys
Joined: 19 Nov 2004 Posts: 649
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Posted: Sat Aug 13, 2005 2:54 pm Post subject: Re: Not all Americans agree |
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yeah well
let me know when 'merka's managed to sort its problems out and good luck with that. In the meantime I'm sure BC and New Brunswick have plenty to say to Martin about this little fiasco.
either America honours the agreement without any more hassle or the number of Canadians willing to put up with this @#%$ any longer is going to get smaller and smaller.
real quick. Parliament resumes in a month. You better believe there's opposition members with a few things they'd like to discuss.
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ans
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bitwhys
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Posted: Sat Aug 13, 2005 7:00 pm Post subject: Re: re |
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you won't have to let me know
I'll be able to figure it out by the news that hell has frozen over.
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ans
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bitwhys
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ans
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ans
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ans
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Galmin The King has spoken!
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ans
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bitwhys
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