Big lumber companies tell MPs they like the softwood deal
by Romeo St. Martin

[PoliticsWatch posted 6:45 p.m. May 31, 2006]

OTTAWA  — Representatives for three of Canada's biggest lumber firms told the Commons trade committee Wednesday that they support the current softwood lumber deal with the U.S.
 
The three firms are Canfor, Weyerhaeuser and Abitibi-Consolidated. 

But six other companies or lumber groups appearing before the committee Wednesday all expressed reservations about the deal and said more time and consultation with industry is needed before Canada signs on.

The executives from the three large firms all argued to their colleagues in statements before the committee that the lumber deal is not perfect but the best Canada could hope for. 

"I appear here today, a voice in support of the softwood lumber framework," said John Weaver, CEO of Abitibi-Consolidated. 

"The framework is not perfect, but we live in the real world, not a perfect world ... This is the right agreement at the right time. If we don't move toward a settlement now, the occasion may not present itself again for a long time and at a high cost to Canada."

Wednesday marked the second time this week that the committee heard from a large panel of industry stakeholders. 

On Monday, all industry representatives appearing before the committee expressed reservations about the deal, with the exception of the of the Maritime Lumber Bureau, which has kept its traditional exemption in the new deal. 

But others lined up Wednesday to voice their concerns. 

John Allen, president of the B.C. Lumber Trade Council, said his group originally came out in the support of the deal in April, but now has some concerns. 

"We've noticed the term sheet changed in the final analysis," he said.

"We must take the time to get this agreement right . . . If we don't have a solid softwood lumber agreement that is commercially viable for the industry then I fear for the whole forest industry itself in Canada and the consequences."

Allen told the committee he is concerned about the so-called anti-circumvention clause in the agreement which allows for the U.S. to approve any changes in forestry policies. 

However, not all of those with concerns are small firms. 

James Lopez, president of Quebec-based Tembec, which employees 8,000 in the industry in Canada, also said he had problems with the process more than the deal.

"A loud message to government is: We have to have extensive and ongoing consultations with the industry," he said. 

Lopez said he would accept the deal with some reluctance after Canada's numerous legal victories against the U.S. at NAFTA and the WTO.

"It is a shame that in a sense we'll be throwing in the towel if we put this final agreement together."
 
He said he found it "extremely distasteful" that the federal government negotiated a deal that allowed the U.S. to keep  $1 billion of the $5 billion collected in duties since the dispute re-emerged four years ago. 

Lopez said the government should insist that Canadian firms receive their duties within 90 days of signing that agreement. 

"I think we need to draw a line in the sand, ladies and gentlemen, and make that position very firm with the United States -- 90 days. "

The committee's hearings will continue next week when Trade Minister David Emerson makes another appearance to discuss the deal. 

Emerson is expected to table legislation or a ways and means motion in the House to pave the way for an export tax that is required in the agreement. 

While all three opposition parties harshly criticized the government in April when it announced the framework agreement, the opposition parties now say they would have to see Emerson's legislation before deciding whether or not to vote it down. 

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