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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