PM ready to get involved in 
lumber dispute 
by Romeo St. Martin

[PoliticsWatch Updated 5:45 p.m. August 11, 2005]

OTTAWA  — International Trade Minister Jim Peterson said Thursday Prime Minister Paul Martin is prepared to get "closely involved" in the softwood lumber dispute with the U.S.   
 
The lumber dispute escalated on Wednesday after a spokesperson for the U.S. trade department said a NAFTA appeal panel ruling in favour of Canada would have "no impact" and the duties on Canadian lumber exports would continue. 

The U.S. also said it had no plans to return an estimated $5 billion in duties collected from Canadian producers to date.

Peterson and government officials initially didn't put much stock in the comments of the U.S. trade spokesperson on Wednesday. 

But by Thursday afternoon, Peterson appeared to believe that was the government's position, given his decision to hold a teleconference with reporters late in the afternoon and to make an appeal to the U.S.

"We have reviewed the statements that came out of the United States," Peterson said. 

"Canada is calling on the United States to follow the rule of law. To stop collecting duties at the border and to return the deposits immediately together with interest."

Peterson said there is a need "for some respect" from the U.S. and that "It's time for the United States to do the right thing."

The minister said he spoke with Martin Thursday morning and that he is 
"quite prepared to be very closely involved in this file on this issue."

But Peterson said he will speak again to the PM on the issue after he speaks with U.S. Trade Representative Rob Portman either Thursday or Friday. 

"We'll see what the results of my discussion with Mr. Portman are."

But Peterson acknowledged again Thursday that the trade dispute with the U.S. will not be resolved through litigation alone and that a negotiated settlement is needed for a long-term solution. 

"The U.S. can bring new trade actions every single year and we will not have stability. We can only achieve that through negotiations."

When asked if he thought the U.S. was flouting the legal rulings of NAFTA tribunals, Peterson said, "We want to make sure that they're not." 

Meanwhile, in Banff, Alberta, where he is a guest at the premiers' conference, David Wilkins, the U.S. ambassador to Canada, reiterated that the U.S. wanted a negotiated settlement. 

"The position of the United States has consistently been that we believe a negotiated settlement is the  way to end this continued dispute," he said. 

"That is the only way to bring finality to this issue."

The involvement of the U.S. ambassador and the potential involvement of the prime minister shows the softwood lumber issue has suddenly escalated into a major political story. 

In another sign of the greater political element, Conservative Leader Stephen Harper entered the debate and blamed the Liberal government's relationship with the U.S. and not U.S. protectionism for the current stalemate in the softwood lumber dispute. 

Harper, who is touring Quebec this week, issued a statement blaming the Liberal government for the U.S.'s decision to continue the battle. 

"Instead of continually taking pot shots at our largest trading partner, the government should be aggressively building relationships with them," said Harper. 

"For years the Liberals have failed to stand up for Canada. Instead they sit on the sidelines while issues like softwood lumber linger on at high financial cost to Canadians."    

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