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U.S. Lumber Coalition Challenges NAFTA
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By Gordon Hoeksta Citizen Staff September 13, 2005
A U.S. lumber group said Monday it is launching a constitutional challenge of the North American Free Trade Agreement’s dispute settlement system.
The U.S. coalition for Fair Lumber Imports has not been happy about a number of NAFTA panel decisions in the softwood lumber trade fight, and has hinted for some time at a constitutional challenge, a move they used more than a decade ago as well.
The U.S. lumber coalition is holding a news conference today in Washington to discuss the details of its action.
B.C. government and forest industry leaders believe it’s a move that could backfire in the U.S., although they were not surprised by the latest development.
"I don’t think it’s a smart move on their part because they’re going to upset even more people, even on their side of the border, with regards to intransigence around NADFTA," said B.C. Forests Minister Rich Coleman. He said the action could jeopardize the overall NAFTA deal, which won’t necessarily play well in all U.S. quarters.
Last week, in a joint statement, the U.S. and Canadian chambers of commerce called on their respective governments not to risk NAFTA or an escalating trade ware over the softwood dispute.
Coleman said the province will watch the latest action by the coalition closely, but continue to be patient with Canada’s legal challenges of the tariffs. At the same time, the province is looking at ways to get back to the negotiating table, added Coleman. "I think that discussion is quietly progressing," he said.
B.C. Lumber Trade council president John Allan also said he doesn’t believe the U.S. lumber coalition’s move will be welcomed by the U.S. administration.
He also questioned why, if the U.S. lumber group is so confident that a recent World Trade Organization ruling negates a key NAFTA panel ruling for Canada, they’re launching the constitutional challenge of NAFTA’s dispute settlement.
It looks like a "desperate measure by desperate men," said Allan.
Brink Forest Products president John Brink said nothing the U.S. lumber coalition does surprises him. "But I think what they have done has really put a blemish on the U.S. government," said Brink. "It makes a mockery of the Bush position on free trade."
Canada can go to the courts or try to exact political pressure, but ultimately the only resolution to the softwood dispute is to negotiate an agreement, said Brink.
The U.S. coalition - whose officials could not be reached for comment Monday - said in an advisory for the news conference it was launching the constitutional challenge because the NAFTA dispute system threatens to prevent the application of U.S. trade laws and their import duties from illegal Canadian subsidies and dumping.
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