How pathetic America has become
Posted: Thu Aug 11, 2005 3:36 pm
The political equivalent of 'neener neener'. 
What's most infuriating is that the Canadian government is to cowardly to do anything about it. GGs Mr. Dithers.Ottawa — Canada scored what should be a knockout legal victory in the softwood dispute Wednesday, but the U.S. government quickly dismissed the unanimous NAFTA ruling as irrelevant, a stalemate that observers warn could undermine respect for the 11-year-old trade deal.
The U.S. lumber lobby, which started the timber battle in 2001, responded to the NAFTA judgment by calling the trade treaty's dispute resolution process “constitutionally defective.”
The Coalition for Fair Lumber Imports announced it's preparing a constitutional challenge to try and scrap this section of the North American free-trade agreement.
Wednesday, a last-ditch NAFTA appeals panel rejected Washington's claims that an earlier string of softwood rulings in favour of Canada broke trade rules.
<u>NAFTA panels have three times concluded that the United States failed to prove that Canadian softwood poses a material threat of injury to U.S. producers.</u>
Under trade rules, if Washington can't prove Canadian timber injures or threatens to injure U.S. producers, it is obliged to scrap the duties on Canadian lumber imports.
Wednesday's decision should end the dispute immediately.
But the United States said the extraordinary challenge committee ruling was inconsequential and that it had no intention of scrapping the duty on Canadian softwood that can exceed 20 per cent or refunding the $5-billion in levies collected over the past few years.
“We are, of course, disappointed with the [NAFTA panel's] decision, but it will have no impact on the anti-dumping and countervailing duty orders,” said Neena Moorjani, spokeswoman for U.S. Trade Representative Rob Portman.
The United States says it found a fresh justification for the softwood duties in November, 2004.
Washington says Wednesday's NAFTA ruling only applies to the U.S. International Trade Commission's 2002 finding of injury. It says the new justification for the duties came after the ITC reinvestigated the case in 2004 and again found Canadian timber poses a threat of injury to the U.S. market.
Ottawa said it believes the United States is now obliged under international law to scrap the softwood duties and refund the levies collected since 2002. “The world is watching,” International Trade Minister Jim Peterson said.
Trade experts say the United States is eroding respect for NAFTA by ignoring Wednesday's decision.
<u>“For the U.S. government to deny the effect of this process weakens respect for the NAFTA and for the rule of law internationally, something the U.S. espouses when it suits its purposes,” said trade lawyer Lawrence Herman of Cassels Brock in Toronto.</u>
While they disagree about Wednesday's ruling, both Canada and the U.S. are trying to steer the conflict to the negotiating table in the hopes of finding a settlement that would end legal wrangling.
Canada's Trade Minister said he thinks the NAFTA ruling enhances Ottawa's negotiating position “because the panel decision was final and unanimous.”
Senior officials from both countries have been meeting since March and another negotiating session is planned as early as Aug. 22.
Ontario's Natural Resources Minister David Ramsay called on the U.S. to reconsider its dismissal of the NAFTA ruling. “How much longer are they going to continue, basically, to ignore an international treaty? That's something they need to ask themselves,” he said. “They'd be pretty upset with us if we decided ... just to ignore decisions such as NAFTA panel decisions.”
The U.S. timber lobby signalled that its members have lost patience with the dispute resolution system. “The process does not work,” said lumber coalition chairman Steve Swanson. “NAFTA panels consistently act beyond their authority under U.S. law and the NAFTA.”

