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Government 'Balkanizing' trade policy on softwood lumber, MP
By Jen Ross, PoliticsWatch.com
First Web Posted: October 4, 2001 @ 5:30 pm

Canadian Alliance MP John Duncan, who called for the debate, asked the government if it was true that it has in fact opened the door for direct negotiations between the United States' Trade Representative and the provinces. 

''If this is the case, then I want to put a warning shot out there that this is betraying free trade,'' said the Alliance critic for international trade. ''If we agree to these kind of Balkanized agreements ... it's an abandonment of Canadian interests.''

Trade is a federal responsibility. In opening up negotiations between provincial leaders and U.S. officials, Duncan said the federal government is trying to ''divide and conquer.''

Pierre Pettigrew, Minister for International Trade, did not provide a direct answer, but he did acknowledge that the provinces would be involved in discussions on softwood coming up in two weeks. Moreover, Pettigrew stressed that the ''Team Canada approach'' -- which includes provincial premiers on international trade missions -- ''has provided the right and best approach for us.'' 

However, not all provinces are in agreement on how to proceed. Notably, Ontario and Alberta insiders continue to express serious reservations on the federal government's current approach.

Even the Bloc Quebecois, which would normally favour bilateral international discussions for Quebec, is opposed to a provincial approach to softwood.

Bloc MP Pierre Paquette said the provinces certainly need to play a role in discussions, seeing as how forestry management is a provincial responsibility, but he said they must stay out of direct negotiations. Paquette said he fears the outcome of bilateral talks would favour certain provinces over others.

''The Americans will attack the weaker provinces where the industry is less competitive,'' he said. ''We need a common front and we need to maintain the consensus about the return to free trade.''

He said only if Canada loses would Quebec want to entertain direct negotiations, to ensure it doesn't end up paying for the subsidies of other provinces, as it did in the 1980s.

Canadian officials wrapped up a three-day plenary session in Washington Thursday, which Pettigrew characterized as a ''great success.'' They are conciliatory meetings meant to find an alternative to litigation at the WTO level. Pettigrew said industry and government leaders on both sides of the border compared forestry management practices at the meeting and tried to find commonalities.

PC-DRC MP Gary Lunn, who sat with the Alliance during the debate, asked if the softwood lumber dispute would be adversely affected if the Prime Minister were to become directly involved in economic policy discussions in another commodity, namely oil and gas.

Duncan urged the federal government to keep their appeal national, and to push it at the highest levels.

''If we stay the course, if we go to the WTO, we will win,'' he said.

In British Columbia alone, Duncan pointed out that there are an estimated 15,000 forest workers laid off. ''The estimates run as high as 30,000 in British Columbia by the end of the year and nationally we are looking at 40,000 to 50,000 unemployed forest workers.'' 

 


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