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OTTAWA - (Web posted Feb. 26, 2002 @ 5:15 p.m.) Ottawa will challenge any final
countervailing duties the U.S. Department of Commerce slaps on Canadian softwood
lumber under the North American Free Trade Agreement.
International Trade Minister Pierre
Pettigrew made the announcement on Tuesday in Ottawa, where it was also revealed
negotiators from both countries will resume talks in Washington on Wednesday.
British Columbia, Quebec and the Maritime
provinces all have a big stake in the softwood lumber dispute with the
Americans, but all three regions have different approaches to harvesting and
processing timber.
That's making negotiations with the
Americans, who say they want pure market principles applied to the harvesting
and processing of timber applied in Canada, more difficult.
Canada has already initiated a challenge of
U.S. law and practice relating to softwood lumber with the World Trade
Organization. This latest action, Pettigrew said, is a means to keep all options
open as the discussions proceed.
 "I'm
being prudent here. I am still favouring the course of a long-term policy
solution with the United States," Pettigrew said, after Question Period.
"Should that not work we do know we
have a very solid case...because we know the allegations of the United States
are wrong."
On Monday, Prime Minister Jean Chrétien
hinted there could be a resolution to the protracted trade dispute, in which the
Americans have placed heavy duties on Canadian softwood lumber products, before
March 21.
That's when the Americans are expected to
make a final ruling on the duties.
On Tuesday, Pettigrew would not say when a
deal could be reached, but the prime minister said in the House of Commons that
he raised the issue with President George Bush during a morning phone call.
"My own guess is that they talked more
about hockey than they did about softwood," said Tory
Leader Joe Clark, who added the NAFTA challenge was a sign the government is
preparing for the talks to collapse.
"They're preparing for failure. I guess
that's a wise thing to do if failure occurs, but they should be doing everything
they can to ensure we don't run into an adverse decision."
David Chatters, Canadian Alliance MP for
Athabasca, said talks with the
Americans have failed, and it's time Ottawa concentrate on proving its case
before the World Trade Organization.
"I think the solution is in the WTO.
We've won it before," said the Alberta MP.
A WTO panel is expected to make a
ruling on the Canadian challenge in about six months.
That may seem like a long time to the
thousands of workers and sawmill owners hurting in the trade dispute, but
Chatters said "the government could support industry and mills...until
(Canada) can win it."
That's been the NDP position for weeks.
"They (the government) have shown no
willingness to do what needs to be done to deal with the short -term crisis,"
said NDP leader Alexa McDonough.
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