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Tuesday, April 25, 2017

Trump files NAFTA claim against Canada

When Washington foisted the North American Free Trade Agreement upon the nation, the politicians and fronts for big business assured us there were protections in the pact.

Nearly a quarter century later, President Trump is using those protections.

From the Wall Street Journal:
The Trump administration is taking retaliatory action against Canada over a trade dispute, moving to impose a 20% tariff on softwood lumber that is typically used to build single-family homes.
In an interview Monday, Commerce Secretary Wilbur Ross said the tariff will be applied retroactively and imposed on Canadian exports to the U.S. of about $5 billion a year. He said the dispute centers on Canadian provinces that have been allegedly allowing loggers to cut down trees at reduced rates and sell them at low prices.
The determination that Canada improperly subsidizes its exports is preliminary, and the Commerce Department will need to make a final decision. In addition, the U.S. International Trade Commission will need to find that the U.S. industry has suffered injury. But even a preliminary decision has immediate real-world consequences, by discouraging importers from buying lumber from Canada.
“We tried to negotiate a settlement but we were unable,” Mr. Ross said, adding that previous administrations have also been unsuccessful in resolving the dispute.
Previous administrations did not want to resolve the dispute in our favor.

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  1. Also the Canadian Greens look the other way for the Lumber industry,
    Here (at least since Clinton)we simply let it burn if we can...
    TG McCoy

  2. Actually Don, lumber has been a thorn betwixt our nations for more then 30 years.

    A good history of the dispute from Wiki -

    Couple of things. The lumber industry up here modernized their operations years before the US companies started.

    Also because of our colder climate, the fiber from our trees tends to be denser then the fiber from the southern part of the US, making it a better product for home building.

    Also, as the article states, some of the larger Canadian companies have operations in the US. What it does not state is that Weyerhaeuser has operations in Canada.

    And TG, actually Greenpees has been a pain in the ass up here with respect to the lumber industry. Resolute is actually taking them to court for defamation - - best part is that Greenpees in a fancy way admitted that it lies so their statements should not be actionable.

    Then there are these douchebags up here also! -

  3. The US loggers have been shut down for many things, such as the spotted owl, so the timber started coming mainly from Canada some time ago.

  4. The US loggers have been shut down for many things, such as the spotted owl, so the timber started coming mainly from Canada some time ago.