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Softwood lumber dispute moving forward


OTTAWA (Web posted October 2, 2002 @ 5:30 p.m.) The softwood lumber dispute has unravelled quickly in the past week, with the biggest surprises being a possible aid package and renewed negotiations with the United States. 

Monday's speech from the throne alluded to the government's intentions to resolve the ongoing trade dispute. Yesterday International Trade Minister Pierre Pettigrew told the House there was a possibility of negotiating a long term settlement with the United States.

Talks between Washington and Ottawa had broken off in the spring.

The government is set to announce a new aid package later this week. Pettigrew and Natural Resources Minister Herb Dhaliwal remain hush about the details. 

But the package is expected to provide money for a voluntary early retirement plan, financial assistance to communities recovering from mill closures and research on pine beetles. It'll also include up to $100 for retraining for workers facing layoffs because of the dispute. The estimated $300 million package will be provided under the Employment Insurance program. 

Dhaliwal said the controversial proposal to offer loan guarantees to firms "is still on," although some trade experts have said such a move could invite more duties from Washington.

Ottawa has been under intense pressure to resolve the dispute because of tremendous job losses in the lumber industry, especially in the Western provinces. Just a few days into Parliament's new session, the issue appears to be progressing quickly. 

Just last week the World Trade Organization upheld a preliminary report siding with Canada, ruled the U.S. Commerce Department was wrong in calculating a 27 per cent duty.

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WTO sides with Canada on softwood lumber tariff

 

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